Senator Deidre M. Henderson proposes the following substitute bill:


1     
TRANSPARENCY FOR POLITICAL

2     
SUBDIVISIONS

3     
2016 GENERAL SESSION

4     
STATE OF UTAH

5     
Chief Sponsor: Deidre M. Henderson

6     
House Sponsor: Craig Hall

7     

8     LONG TITLE
9     General Description:
10          This bill modifies provisions relating to local government disclosures.
11     Highlighted Provisions:
12          This bill:
13          ▸     requires a local district or a special service district to post on the Utah Public Notice
14     Website the contact information of each member of the district's governing body;
15          ▸     removes a size and budget threshold for local government participation in the Utah
16     Public Finance Website; and
17          ▸     makes technical and conforming changes.
18     Money Appropriated in this Bill:
19          None
20     Other Special Clauses:
21          None
22     Utah Code Sections Affected:
23     AMENDS:
24          17B-1-303, as last amended by Laws of Utah 2014, Chapters 362 and 377
25          17D-1-106, as last amended by Laws of Utah 2014, Chapter 362

26          63A-3-401, as last amended by Laws of Utah 2015, Chapter 38
27          63A-3-403, as last amended by Laws of Utah 2014, Chapters 75, 185, and 387
28          63A-3-405, as last amended by Laws of Utah 2012, Chapter 94
29          63F-1-701, as last amended by Laws of Utah 2013, Chapter 63
30     

31     Be it enacted by the Legislature of the state of Utah:
32          Section 1. Section 17B-1-303 is amended to read:
33          17B-1-303. Term of board of trustees members -- Oath of office -- Bond -- Notice
34     of board member contact information.
35          (1) (a) Except as provided in Subsections (1)(b) and (c), the term of each member of a
36     board of trustees shall begin at noon on the January 1 following the member's election or
37     appointment.
38          (b) The term of each member of the initial board of trustees of a newly created local
39     district shall begin:
40          (i) upon appointment, for an appointed member; and
41          (ii) upon the member taking the oath of office after the canvass of the election at which
42     the member is elected, for an elected member.
43          (c) The term of each water conservancy district board member appointed by the
44     governor as provided in Subsection 17B-2a-1005(2)(c) shall:
45          (i) begin on the later of the following:
46          (A) the date on which the Senate consents to the appointment; or
47          (B) the expiration date of the prior term; and
48          (ii) end on the February 1 that is approximately four years after the date described in
49     Subsection (1)(c)(i)(A) or (B).
50          (2) (a) (i) Except as provided in Subsection (8), and subject to Subsection (2)(a)(ii), the
51     term of each member of a board of trustees shall be four years, except that approximately half
52     the members of the initial board of trustees, chosen by lot, shall serve a two-year term so that
53     the term of approximately half the board members expires every two years.
54          (ii) (A) If the terms of members of the initial board of trustees of a newly created local
55     district do not begin on January 1 because of application of Subsection (1)(b), the terms of
56     those members shall be adjusted as necessary, subject to Subsection (2)(a)(ii)(B), to result in

57     the terms of their successors complying with:
58          (I) the requirement under Subsection (1)(a) for a term to begin on January 1 following
59     a member's election or appointment; and
60          (II) the requirement under Subsection (2)(a)(i) that terms be four years.
61          (B) An adjustment under Subsection (2)(a)(ii)(A) may not add more than a year to or
62     subtract more than a year from a member's term.
63          (b) Each board of trustees member shall serve until a successor is duly elected or
64     appointed and qualified, unless the member earlier is removed from office or resigns or
65     otherwise leaves office.
66          (c) If a member of a board of trustees no longer meets the qualifications of Subsection
67     17B-1-302(1), or if the member's term expires without a duly elected or appointed successor:
68          (i) the member's position is considered vacant, subject to Subsection (2)(c)(ii); and
69          (ii) the member may continue to serve until a successor is duly elected or appointed
70     and qualified.
71          (3) (a) (i) Before entering upon the duties of office, each member of a board of trustees
72     shall take the oath of office specified in Utah Constitution Article IV, Section 10.
73          (ii) An oath of office may be administered by a judge, county clerk, notary public, or
74     the local district clerk.
75          (b) Each oath of office shall be filed with the clerk of the local district.
76          (c) The failure of a board of trustees member to take the oath required by Subsection
77     (3)(a) does not invalidate any official act of that member.
78          (4) A board of trustees member is not limited in the number of terms the member may
79     serve.
80          (5) Except as provided in Subsection (6), each midterm vacancy in a board of trustees
81     position shall be filled as provided in Section 20A-1-512.
82          (6) (a) For purposes of this Subsection (6):
83          (i) "Appointed official" means a person who:
84          (A) is appointed as a member of a local district board of trustees by a county or
85     municipality entitled to appoint a member to the board; and
86          (B) holds an elected position with the appointing county or municipality.
87          (ii) "Appointing entity" means the county or municipality that appointed the appointed

88     official to the board of trustees.
89          (b) The board of trustees shall declare a midterm vacancy for the board position held
90     by an appointed official if:
91          (i) during the appointed official's term on the board of trustees, the appointed official
92     ceases to hold the elected position with the appointing entity; and
93          (ii) the appointing entity submits a written request to the board to declare the vacancy.
94          (c) Upon the board's declaring a midterm vacancy under Subsection (6)(b), the
95     appointing entity shall appoint another person to fill the remaining unexpired term on the board
96     of trustees.
97          (7) (a) Each member of a board of trustees shall give a bond for the faithful
98     performance of the member's duties, in the amount and with the sureties prescribed by the
99     board of trustees.
100          (b) The local district shall pay the cost of each bond required under Subsection (7)(a).
101          (8) The lieutenant governor may extend the term of an elected district board member
102     by one year in order to compensate for a change in the election year under Subsection
103     17B-1-306(13).
104          (9) (a) A local district shall:
105          (i) post on the Utah Public Notice Website created in Section 63F-1-701 the name,
106     phone number, and email address of each member of the local district's board of trustees;
107          (ii) update the information described in Subsection (9)(a)(i) when:
108          (A) the membership of the board of trustees changes; or
109          (B) a member of the board of trustees' phone number or email address changes; and
110          (iii) post any update required under Subsection (9)(a)(ii) within 30 days after the day
111     on which the change requiring the update occurs.
112          (b) This Subsection (9) applies regardless of whether the county or municipal
113     legislative body also serves as the board of trustees of the local district.
114          Section 2. Section 17D-1-106 is amended to read:
115          17D-1-106. Special service districts subject to other provisions.
116          (1) A special service district is, to the same extent as if it were a local district, subject
117     to and governed by:
118          (a) (i) Sections 17B-1-105, 17B-1-107, 17B-1-108, 17B-1-110, 17B-1-111, 17B-1-112,

119     17B-1-113, 17B-1-116, 17B-1-118, 17B-1-119, 17B-1-120, 17B-1-121, 17B-1-304,
120     17B-1-307, 17B-1-310, 17B-1-311, 17B-1-312, 17B-1-313, and 17B-1-314; and
121          (ii) Sections 17B-1-305 and 17B-1-306, to the extent that a county legislative body or a
122     municipal legislative body, as applicable, has delegated authority to an administrative control
123     board with elected members, under Section 17D-1-301.
124          (b) Subsections:
125          (i) 17B-1-301(3) and (4); and
126          (ii) 17B-1-303(1), (2)(a) and (b), (3), (4), (5), (6), [and] (7), and (9);
127          (c) Section 20A-1-512;
128          (d) Title 17B, Chapter 1, Part 6, Fiscal Procedures for Local Districts;
129          (e) Title 17B, Chapter 1, Part 7, Local District Budgets and Audit Reports;
130          (f) Title 17B, Chapter 1, Part 8, Local District Personnel Management; and
131          (g) Title 17B, Chapter 1, Part 9, Collection of Service Fees and Charges.
132          (2) For purposes of applying the provisions listed in Subsection (1) to a special service
133     district, each reference in those provisions to the local district board of trustees means the
134     governing body.
135          Section 3. Section 63A-3-401 is amended to read:
136          63A-3-401. Definitions.
137          As used in this part:
138          (1) "Board" means the Utah Transparency Advisory Board created under Section
139     63A-3-403.
140          (2) "Division" means the Division of Finance of the Department of Administrative
141     Services.
142          (3) (a) "Independent entity," except as provided in Subsection (3)(c), means the same
143     as that term is defined in Section 63E-1-102.
144          (b) "Independent entity" includes an entity that is part of an independent entity
145     described in this Subsection (3), if the entity is considered a component unit of the independent
146     entity under the governmental accounting standards issued by the Governmental Accounting
147     Standards Board.
148          (c) "Independent entity" does not include:
149          (i) the Workers' Compensation Fund created in Section 31A-33-102; or

150          (ii) the Utah State Retirement Office created in Section 49-11-201.
151          (4) "Participating local entity" means each of the following local entities[, if the entity
152     meets the size or budget thresholds established by the board under Subsection
153     63A-3-403(3)(e)]:
154          (a) a county;
155          (b) a municipality;
156          (c) a local district under Title 17B, Limited Purpose Local Government Entities - Local
157     Districts;
158          (d) a special service district under Title 17D, Chapter 1, Special Service District Act;
159          (e) a school district;
160          (f) a charter school;
161          (g) except for a taxed interlocal entity described in Section 11-13-315, an interlocal
162     entity as defined in Section 11-13-103; and
163          (h) except for a taxed interlocal entity described in Section 11-13-315, an entity that is
164     part of an entity described in Subsections (4)(a) through (g), if the entity is considered a
165     component unit of the entity described in Subsections (4)(a) through (g) under the
166     governmental accounting standards issued by the Governmental Accounting Standards Board.
167          (5) (a) "Participating state entity" means the state of Utah, including its executive,
168     legislative, and judicial branches, its departments, divisions, agencies, boards, commissions,
169     councils, committees, and institutions.
170          (b) "Participating state entity" includes an entity that is part of an entity described in
171     Subsection (5)(a), if the entity is considered a component unit of the entity described in
172     Subsection (5)(a) under the governmental accounting standards issued by the Governmental
173     Accounting Standards Board.
174          (6) "Public financial information" means records that are required to be made available
175     on the Utah Public Finance Website, a participating local entity's website, or an independent
176     entity's website as required by this part, and as the term "public financial information" is
177     defined by rule under Section 63A-3-404.
178          Section 4. Section 63A-3-403 is amended to read:
179          63A-3-403. Utah Transparency Advisory Board -- Creation -- Membership --
180     Duties.

181          (1) There is created within the department the Utah Transparency Advisory Board
182     comprised of members knowledgeable about public finance or providing public access to
183     public information.
184          (2) The board consists of:
185          (a) an individual appointed by the director of the Division of Finance;
186          (b) an individual appointed by the executive director of the Governor's Office of
187     Management and Budget;
188          (c) an individual appointed by the governor on advice from the Legislative Fiscal
189     Analyst;
190          (d) one member of the Senate, appointed by the governor on advice from the president
191     of the Senate;
192          (e) one member of the House of Representatives, appointed by the governor on advice
193     from the speaker of the House of Representatives;
194          (f) an individual appointed by the director of the Department of Technology Services;
195          (g) the director of the Division of Archives and Records Service created in Section
196     63A-12-101 or the director's designee;
197          (h) an individual who is a member of the State Records Committee created in Section
198     63G-2-501, appointed by the governor;
199          (i) an individual representing counties, appointed by the governor;
200          (j) an individual representing municipalities, appointed by the governor;
201          (k) an individual representing special districts, appointed by the governor; and
202          (l) two individuals who are members of the public and who have knowledge, expertise,
203     or experience in matters relating to the board's duties under Subsection (10), appointed by the
204     board members identified in Subsections (2)(a) through (k).
205          (3) The board shall:
206          (a) advise the division on matters related to the implementation and administration of
207     this part;
208          (b) develop plans, make recommendations, and assist in implementing the provisions
209     of this part;
210          (c) determine what public financial information shall be provided by a participating
211     state entity, independent entity, and participating local entity, if the public financial

212     information:
213          (i) only includes records that:
214          (A) are classified as public under Title 63G, Chapter 2, Government Records Access
215     and Management Act, or, subject to any specific limitations and requirements regarding the
216     provision of financial information from the entity described in Section 63A-3-402, if an entity
217     is exempt from Title 63G, Chapter 2, Government Records Access and Management Act,
218     records that would normally be classified as public if the entity were not exempt from Title
219     63G, Chapter 2, Government Records Access and Management Act;
220          (B) are an accounting of money, funds, accounts, bonds, loans, expenditures, or
221     revenues, regardless of the source; and
222          (C) are owned, held, or administered by the participating state entity, independent
223     entity, or participating local entity that is required to provide the record; and
224          (ii) is of the type or nature that should be accessible to the public via a website based
225     on considerations of:
226          (A) the cost effectiveness of providing the information;
227          (B) the value of providing the information to the public; and
228          (C) privacy and security considerations;
229          (d) evaluate the cost effectiveness of implementing specific information resources and
230     features on the website;
231          [(e) establish size or budget thresholds to identify those local entities that qualify as
232     participating local entities as defined in this part, giving special consideration to the budget and
233     resource limitations of an entity with a current annual budget of less than $10,000,000;]
234          [(f)] (e) require participating local entities to provide public financial information in
235     accordance with the requirements of this part, with a specified content, reporting frequency,
236     and form;
237          [(g)] (f) require an independent entity's website or a participating local entity's website
238     to be accessible by link or other direct route from the Utah Public Finance Website if the
239     independent entity or participating local entity does not use the Utah Public Finance Website;
240          [(h)] (g) determine the search methods and the search criteria that shall be made
241     available to the public as part of a website used by an independent entity or a participating local
242     entity under the requirements of this part, which criteria may include:

243          (i) fiscal year;
244          (ii) expenditure type;
245          (iii) name of the agency;
246          (iv) payee;
247          (v) date; and
248          (vi) amount; and
249          [(i)] (h) analyze ways to improve the information on the Utah Public Finance Website
250     so the information is more relevant to citizens, including through the use of:
251          (i) infographics that provide more context to the data; and
252          (ii) geolocation services, if possible.
253          (4) The board shall annually elect a chair and a vice chair from its members.
254          (5) (a) Each member shall serve a two-year term.
255          (b) When a vacancy occurs in the membership for any reason, the replacement shall be
256     appointed for the remainder of the unexpired term.
257          (6) To accomplish its duties, the board shall meet as it determines necessary.
258          (7) Reasonable notice shall be given to each member of the board before any meeting.
259          (8) A majority of the board constitutes a quorum for the transaction of business.
260          (9) (a) A member who is not a legislator may not receive compensation or benefits for
261     the member's service, but may receive per diem and travel expenses as allowed in:
262          (i) Section 63A-3-106;
263          (ii) Section 63A-3-107; and
264          (iii) rules made by the Division of Finance according to Sections 63A-3-106 and
265     63A-3-107.
266          (b) Compensation and expenses of a member who is a legislator are governed by
267     Section 36-2-2 and Legislative Joint Rules, Title 5, Legislative Compensation and Expenses.
268          (10) (a) As used in Subsections (10) and (11):
269          (i) "Information website" means a single Internet website containing public information
270     or links to public information.
271          (ii) "Public information" means records of state government, local government, or an
272     independent entity that are classified as public under Title 63G, Chapter 2, Government
273     Records Access and Management Act, or, subject to any specific limitations and requirements

274     regarding the provision of financial information from the entity described in Section
275     63A-3-402, if an entity is exempt from Title 63G, Chapter 2, Government Records Access and
276     Management Act, records that would normally be classified as public if the entity were not
277     exempt from Title 63G, Chapter 2, Government Records Access and Management Act.
278          (b) The board shall:
279          (i) study the establishment of an information website and develop recommendations for
280     its establishment;
281          (ii) develop recommendations about how to make public information more readily
282     available to the public through the information website;
283          (iii) develop standards to make uniform the format and accessibility of public
284     information posted to the information website; and
285          (iv) identify and prioritize public information in the possession of a state agency or
286     political subdivision that may be appropriate for publication on the information website.
287          (c) In fulfilling its duties under Subsection (10)(b), the board shall be guided by
288     principles that encourage:
289          (i) (A) the establishment of a standardized format of public information that makes the
290     information more easily accessible by the public;
291          (B) the removal of restrictions on the reuse of public information;
292          (C) minimizing limitations on the disclosure of public information while appropriately
293     safeguarding sensitive information; and
294          (D) balancing factors in favor of excluding public information from an information
295     website against the public interest in having the information accessible on an information
296     website;
297          (ii) (A) permanent, lasting, open access to public information; and
298          (B) the publication of bulk public information;
299          (iii) the implementation of well-designed public information systems that ensure data
300     quality, create a public, comprehensive list or index of public information, and define a process
301     for continuous publication of and updates to public information;
302          (iv) the identification of public information not currently made available online and the
303     implementation of a process, including a timeline and benchmarks, for making that public
304     information available online; and

305          (v) accountability on the part of those who create, maintain, manage, or store public
306     information or post it to an information website.
307          (d) The department shall implement the board's recommendations, including the
308     establishment of an information website, to the extent that implementation:
309          (i) is approved by the Legislative Management Committee;
310          (ii) does not require further legislative appropriation; and
311          (iii) is within the department's existing statutory authority.
312          (11) The department shall, in consultation with the board and as funding allows,
313     modify the information website described in Subsection (10) to:
314          (a) by January 1, 2015, serve as a point of access for Government Records Access and
315     Management requests for executive agencies;
316          (b) by January 1, 2016, serve as a point of access for Government Records Access and
317     Management requests for:
318          (i) school districts;
319          (ii) charter schools;
320          (iii) public transit districts created under Title 17B, Chapter 2a, Part 8, Public Transit
321     District Act;
322          (iv) counties; and
323          (v) municipalities;
324          (c) by January 1, 2017, serve as a point of access for Government Records Access and
325     Management requests for:
326          (i) local districts under Title 17B, Limited Purpose Local Government Entities - Local
327     Districts; and
328          (ii) special service districts under Title 17D, Chapter 1, Special Service District Act;
329          (d) except as provided in Subsection (12)(a), provide link capabilities to other existing
330     repositories of public information, including maps, photograph collections, legislatively
331     required reports, election data, statute, rules, regulations, and local ordinances that exist on
332     other agency and political subdivision websites;
333          (e) provide multiple download options in different formats, including nonproprietary,
334     open formats where possible;
335          (f) provide any other public information that the board, under Subsection (10),

336     identifies as appropriate for publication on the information website; and
337          (g) incorporate technical elements the board identifies as useful to a citizen using the
338     information website.
339          (12) (a) The department, in consultation with the board, shall establish by rule any
340     restrictions on the inclusion of maps and photographs, as described in Subsection (11)(d), on
341     the website described in Subsection (10) if the inclusion would pose a potential security
342     concern.
343          (b) The website described in Subsection (10) may not publish any record that is
344     classified as private, protected, or controlled under Title 63G, Chapter 2, Government Records
345     Access and Management Act.
346          Section 5. Section 63A-3-405 is amended to read:
347          63A-3-405. Participation by local entities.
348          (1) (a) Not later than May 15, 2010, the following participating local entities, in
349     conformity with the rules established under Section 63A-3-404, shall provide public financial
350     information through the Utah Public Finance Website or their own website and provide a link
351     to their website through the Utah Public Finance Website:
352          (i) school districts;
353          (ii) charter schools; and
354          (iii) public transit districts created under Title 17B, Chapter 2a, Part 8, Public Transit
355     District Act.
356          (b) Participating local entities subject to this Subsection (1) shall permit information
357     that is generated not later than the fiscal year that begins July 1, 2009, to be accessible via the
358     website.
359          (2) (a) Not later than May 15, 2011, the following participating local entities, in
360     conformity with the rules established under Section 63A-3-404, shall be required to provide
361     public financial information through the Utah Public Finance Website or their own website and
362     provide a link to their website through the Utah Public Finance Website:
363          (i) counties;
364          (ii) municipalities;
365          (iii) local districts under Title 17B, Limited Purpose Local Government Entities - Local
366     Districts, that are not already required to report; and

367          (iv) special service districts under Title 17D, Chapter 1, Special Service District Act.
368          (b) Participating local entities subject to this Subsection (2) shall permit information
369     that is generated not later than the fiscal year that begins July 1, 2010, to be accessible via the
370     website.
371          (3) (a) On or before May 15, 2013, an interlocal entity that is a participating local entity
372     in conformity with the rules established under Section 63A-3-404, shall, subject to Subsection
373     (3)(b), provide public financial information through the Utah Public Finance Website or the
374     interlocal entity's own website and provide a link to their website through the Utah Public
375     Finance Website.
376          (b) A participating local entity subject to this Subsection (3) shall provide public
377     financial information that is generated on or after the fiscal year that begins July 1, 2012, to be
378     accessible via the website.
379          (4) A participating local entity that makes public financial information accessible via
380     the Utah Public Finance Website in 2016 and that was not previously required to make
381     financial information accessible via the website shall permit information that is generated on or
382     after the first day of the participating local entity's fiscal year that includes May 10, 2016, to be
383     accessible via the website.
384          Section 6. Section 63F-1-701 is amended to read:
385          63F-1-701. Utah Public Notice Website -- Establishment and administration.
386          (1) As used in this part:
387          (a) "Division" means the Division of Archives and Records Service of the Department
388     of Administrative Services.
389          (b) "Public body" has the same meaning as provided under Section 52-4-103.
390          (c) "Public information" means a public body's public notices, minutes, audio
391     recordings, and other materials that are required to be posted to the website under Title 52,
392     Chapter 4, Open and Public Meetings Act, or other statute or state agency rule.
393          (d) "Website" means the Utah Public Notice Website created under this section.
394          (2) There is created the Utah Public Notice Website to be administered by the Division
395     of Archives and Records Service.
396          (3) The website shall consist of an Internet website provided to assist the public to find
397     posted public information.

398          (4) The division, with the technical assistance of the Department of Technology
399     Services, shall create the website which shall:
400          (a) allow a public body, or other certified entity, to easily post any public information,
401     including the contact information required under Subsections 17B-1-303(9) and
402     17D-1-106(1)(b)(ii);
403          (b) allow the public to search the public information by:
404          (i) public body name;
405          (ii) date of posting of the notice;
406          (iii) date of any meeting or deadline included as part of the public information; and
407          (iv) any other criteria approved by the division;
408          (c) allow the public to search and view past, archived public information;
409          (d) allow a person to subscribe to receive updates and notices associated with a public
410     body or a particular type of public information;
411          (e) be easily accessible by the public from the State of Utah home page;
412          (f) have a unique and simplified website address;
413          (g) be directly accessible via a link from the main page of the official state website; and
414          (h) include other links, features, or functionality that will assist the public in obtaining
415     and reviewing public information posted on the website, as may be approved by the division.
416          (5) The division shall be responsible for:
417          (a) establishing and maintaining the website, including the provision of equipment,
418     resources, and personnel as is necessary;
419          (b) providing a mechanism for public bodies or other certified entities to have access to
420     the website for the purpose of posting and modifying public information; and
421          (c) maintaining an archive of all public information posted to the website.
422          (6) The timing for posting and the content of the public information posted to the
423     website shall be the responsibility of the public body or other entity posting the public
424     information.