This document includes House Floor Amendments incorporated into the bill on Mon, Mar 5, 2018 at 7:04 PM by lerror.
1     
DEDICATED CREDITS AND NONLAPSING AUTHORITY

2     
REVISIONS

3     
2018 GENERAL SESSION

4     
STATE OF UTAH

5     
Chief Sponsor: Bradley G. Last

6     
Senate Sponsor: Jerry W. Stevenson

7     

8     LONG TITLE
9     General Description:
10          This bill modifies provisions in the Budgetary Procedures Act and other provisions
11     relating to dedicated credits and nonlapsing authority.
12     Highlighted Provisions:
13          This bill:
14          ▸     defines terms;
15          ▸     clarifies use of the terms "item of appropriation" and "line item";
16          ▸     modifies provisions related to the treatment and expenditure of dedicated credits;
17          ▸     provides procedures for submitting and revising budget execution plans;
18          ▸     modifies provisions relating to nonlapsing appropriations; and
19          ▸     reorganizes existing classifications of:
20               •     nonlapsing appropriations from accounts and programs; and
21               •     appropriations to programs.
22     Money Appropriated in this Bill:
23          None
24     Other Special Clauses:
25          This bill provides a special effective date.
26     Utah Code Sections Affected:
27     AMENDS:

28          26-1-6, as last amended by Laws of Utah 2009, Chapter 183
29          41-1a-121, as enacted by Laws of Utah 2011, Chapter 189
30          41-1a-1221, as last amended by Laws of Utah 2012, Chapter 397
31          41-3-601, as last amended by Laws of Utah 2015, Chapter 93
32          41-3-604, as last amended by Laws of Utah 2011, Chapter 189
33          41-22-36, as last amended by Laws of Utah 2011, Chapter 189
34          53C-1-201, as last amended by Laws of Utah 2016, Chapter 193
35          54-5-1.5, as last amended by Laws of Utah 2017, Chapter 396
36          62A-1-111.5, as enacted by Laws of Utah 2017, Chapter 330 and further amended by
37     Revisor Instructions, Laws of Utah 2017, Chapter 330
38          62A-1-202, as enacted by Laws of Utah 2014, Chapter 37
39          63I-1-263, as last amended by Laws of Utah 2017, Chapters 23, 47, 95, 166, 205, 469,
40     and 470
41          63I-2-263, as last amended by Laws of Utah 2017, First Special Session, Chapter 1
42          63J-1-102, as last amended by Laws of Utah 2015, Chapter 175
43          63J-1-104, as last amended by Laws of Utah 2013, Chapter 310
44          63J-1-206, as last amended by Laws of Utah 2017, First Special Session, Chapter 1
45          63J-1-209, as renumbered and amended by Laws of Utah 2009, Chapters 183 and 368
46          63J-1-217, as last amended by Laws of Utah 2013, Chapter 310
47          63J-1-601, as last amended by Laws of Utah 2016, Chapter 271
48          63J-1-602, as last amended by Laws of Utah 2010, Chapters 9, 10, 218, 265, 277, 278,
49     287, 324, 379, 391, 399 and last amended by Coordination Clause, Laws of Utah
50     2010, Chapter 265
51          63J-2-102, as last amended by Laws of Utah 2017, Chapter 363
52          63J-2-201, as renumbered and amended by Laws of Utah 2008, Chapter 382
53          63J-2-202, as last amended by Laws of Utah 2012, Chapter 102
54          63J-4-301, as last amended by Laws of Utah 2013, Chapter 310
55          63N-8-103, as last amended by Laws of Utah 2016, Chapter 51
56          73-18-25, as last amended by Laws of Utah 2011, Chapter 189
57     ENACTS:
58          63J-1-105, Utah Code Annotated 1953

59     REPEALS AND REENACTS:
60          63J-1-602.1 (Superseded 09/30/18), as last amended by Laws of Utah 2017, Chapters
61     88, 194, and 383
62          63J-1-602.1 (Effective 09/30/18), as last amended by Laws of Utah 2017, Chapters 88,
63     107, 194, and 383
64          63J-1-602.2, as last amended by Laws of Utah 2015, Chapters 86, 93, and 189
65     REPEALS:
66          63J-1-602.3, as last amended by Laws of Utah 2017, Chapters 396 and 423
67          63J-1-602.4, as last amended by Laws of Utah 2017, Chapters 253, 430, and 470
68          63J-1-602.5, as last amended by Laws of Utah 2016, Chapter 177
69     

70     Be it enacted by the Legislature of the state of Utah:
71          Section 1. Section 26-1-6 is amended to read:
72          26-1-6. Fee schedule adopted by department.
73          (1) The department may adopt a schedule of fees that may be assessed for services
74     rendered by the department, provided that the fees are:
75          (a) reasonable and fair; and
76          (b) submitted to the Legislature as part of the department's annual appropriations
77     request.
78          (2) When the department submits a fee schedule to the Legislature, the Legislature, in
79     accordance with Section 63J-1-504, may:
80          (a) approve the fee;
81          (b) increase or decrease and approve the fee; or
82          (c) reject any fee submitted to it.
83          (3) Fees approved by the Legislature pursuant to this section shall be paid into the state
84     treasury [in accordance with Section 63J-1-104].
85          Section 2. Section 41-1a-121 is amended to read:
86          41-1a-121. Electronic Payment Fee Restricted Account.
87          (1) As used in this section, "account" means the Electronic Payment Fee Restricted
88     Account created by this section.
89          (2) There is created within the General Fund a restricted account known as the

90     Electronic Payment Fee Restricted Account.
91          (3) (a) The account shall be funded from the fees imposed and collected under Sections
92     41-1a-1221, 41-3-604, 41-22-36, and 73-18-25.
93          (b) The fees described in Subsection (3)(a) shall be paid to the division, which shall
94     deposit them in the account.
95          (4) The Legislature shall appropriate the funds in the account to the commission to
96     cover the costs of electronic payments.
97          (5) In accordance with Section [63J-1-602.2] 63J-1-602.1, appropriations made to the
98     division from the account are nonlapsing.
99          Section 3. Section 41-1a-1221 is amended to read:
100          41-1a-1221. Fees to cover the cost of electronic payments.
101          (1) As used in this section:
102          (a) "Electronic payment" means use of any form of payment processed through
103     electronic means, including credit cards, debit cards, and automatic clearinghouse transactions.
104          (b) "Electronic payment fee" means the fee assessed to defray:
105          (i) the charge, discount fee, or processing fee charged by credit card companies or
106     processing agents to process an electronic payment; or
107          (ii) costs associated with the purchase of equipment necessary for processing electronic
108     payments.
109          (2) (a) The Motor Vehicle Division may collect an electronic payment fee on all
110     registrations and renewals of registration under Subsections 41-1a-1206(1)(a), (1)(b), (2)(a),
111     (2)(b), and (3).
112          (b) The fee described in Subsection (2)(a):
113          (i) shall be imposed regardless of the method of payment for a particular transaction;
114     and
115          (ii) need not be separately identified from the fees imposed for registration and
116     renewals of registration under Subsections 41-1a-1206(1)(a), (1)(b), (2)(a), (2)(b), and (3).
117          (3) The division shall establish the fee according to the procedures and requirements of
118     Section 63J-1-504.
119          (4) A fee imposed under this section:
120          (a) shall be deposited in the Electronic Payment Fee Restricted Account created by

121     Section 41-1a-121; and
122          (b) is not subject to Subsection [63J-2-202(2)] 63J-1-105(3) or (4).
123          Section 4. Section 41-3-601 is amended to read:
124          41-3-601. Fees.
125          (1) The administrator shall collect fees determined by the commission under Section
126     63J-1-504 for each of the following:
127          (a) new motor vehicle dealer's license;
128          (b) used motor vehicle dealer's license;
129          (c) new motorcycle, off-highway vehicle, and small trailer dealer;
130          (d) used motorcycle, off-highway vehicle, and small trailer dealer;
131          (e) motor vehicle salesperson's license;
132          (f) motor vehicle salesperson's transfer or reissue fee;
133          (g) motor vehicle manufacturer's license;
134          (h) motor vehicle transporter's license;
135          (i) motor vehicle dismantler's license;
136          (j) motor vehicle crusher's license;
137          (k) motor vehicle remanufacturer's license;
138          (l) body shop's license;
139          (m) distributor or factory branch and distributor branch's license;
140          (n) representative's license;
141          (o) dealer plates;
142          (p) dismantler plates;
143          (q) manufacturer plates;
144          (r) transporter plates;
145          (s) damaged plate replacement;
146          (t) in-transit permits;
147          (u) loaded demonstration permits;
148          (v) additional place of business;
149          (w) special equipment dealer's license;
150          (x) temporary permits; and
151          (y) temporary sports event registration certificates.

152          (2) (a) To pay for training certified vehicle inspectors and enforcement under Sections
153     41-1a-1001 through 41-1a-1008, the State Tax Commission shall establish and the
154     administrator shall collect inspection fees determined by the commission under Section
155     63J-1-504.
156          (b) The division shall use fees collected under Subsection (2)(a) as dedicated credits to
157     be used toward the costs of the division.
158          (3) (a) At the time of application, the administrator shall collect a fee of $200 for each
159     salvage vehicle buyer license.
160          (b) The administrator may retain a portion of the fee under Subsection (3)(a) to offset
161     the administrator's actual costs of administering and enforcing salvage vehicle buyer licenses.
162          (4) A fee imposed under Subsection (1)(x) or (y):
163          (a) shall be deposited into the Motor Vehicle Enforcement Division Temporary Permit
164     Restricted Account created by Section 41-3-110; and
165          (b) is not subject to Subsection [63J-2-202(2)] 63J-1-105(3) or (4).
166          Section 5. Section 41-3-604 is amended to read:
167          41-3-604. Fee to cover the cost of electronic payments.
168          (1) As used in this section:
169          (a) "Electronic payment" has the same meaning as defined in Section 41-1a-1221.
170          (b) "Electronic payment fee" has the same meaning as defined in Section 41-1a-1221.
171          (2) (a) The division may collect a fee to cover the cost of electronic payments on the
172     following transactions:
173          (i) each purchase or renewal of a license under Section 41-3-202;
174          (ii) each purchase of a book of temporary permits under Section 41-3-302;
175          (iii) each penalty issued for a delinquent temporary permit under Section 41-3-302;
176          (iv) each purchase of an in-transit permit under Section 41-3-305;
177          (v) each purchase of a loaded demonstration permit under Section 41-3-502;
178          (vi) each purchase of a license plate under Section 41-3-503; and
179          (vii) each purchase of a salvage vehicle buyer license under Section 41-3-202.
180          (b) The fee described in Subsection (2)(a):
181          (i) shall be imposed regardless of the method of payment for a particular transaction;
182     and

183          (ii) need not be separately identified from the fees and penalty described in Subsections
184     (2)(a)(i) through (vii).
185          (3) The division shall establish the fee under Subsection (2)(a) according to the
186     procedures and requirements of Section 63J-1-504.
187          (4) A fee imposed under this section:
188          (a) shall be deposited in the Electronic Payment Fee Restricted Account created by
189     Section 41-1a-121; and
190          (b) is not subject to Subsection [63J-2-202(2)] 63J-1-105(3) or (4).
191          Section 6. Section 41-22-36 is amended to read:
192          41-22-36. Fees to cover the costs of electronic payments.
193          (1) As used in this section:
194          (a) "Electronic payment" has the same meaning as defined in Section 41-1a-1221.
195          (b) "Electronic payment fee" has the same meaning as defined in Section 41-1a-1221.
196          (2) (a) The Motor Vehicle Division may collect an electronic payment fee on all
197     registrations and renewals of registration under Section 41-22-8.
198          (b) The fee described in Subsection (2)(a) shall be imposed regardless of the method of
199     payment for a particular transaction.
200          (3) The division shall establish the fee according to the procedures and requirements of
201     Section 63J-1-504.
202          (4) A fee imposed under this section:
203          (a) shall be deposited in the Electronic Payment Fee Restricted Account created by
204     Section 41-1a-121;
205          (b) is not subject to Subsection [63J-2-202(2)] 63J-1-105(3) or (4); and
206          (c) need not be separately identified from the fees imposed on registrations and
207     renewals of registration under Section 41-22-8.
208          Section 7. Section 53C-1-201 is amended to read:
209          53C-1-201. Creation of administration -- Purpose -- Director -- Participation in
210     Risk Management Fund.
211          (1) (a) There is established within state government the School and Institutional Trust
212     Lands Administration.
213          (b) The administration shall manage all school and institutional trust lands and assets

214     within the state, except as otherwise provided in Title 53C, Chapter 3, Deposit and Allocation
215     of Revenue from Trust Lands, and Title 53D, Chapter 1, School and Institutional Trust Fund
216     Management Act.
217          (2) The administration is an independent state agency and not a division of any other
218     department.
219          (3) (a) It is subject to the usual legislative and executive department controls except as
220     provided in this Subsection (3).
221          (b) (i) The director may make rules as approved by the board that allow the
222     administration to classify a business proposal submitted to the administration as protected
223     under Section 63G-2-305, for as long as is necessary to evaluate the proposal.
224          (ii) The administration shall return the proposal to the party who submitted the
225     proposal, and incur no further duties under Title 63G, Chapter 2, Government Records Access
226     and Management Act, if the administration determines not to proceed with the proposal.
227          (iii) The administration shall classify the proposal pursuant to law if it decides to
228     proceed with the proposal.
229          (iv) Section 63G-2-403 does not apply during the review period.
230          (c) The director shall make rules in compliance with Title 63G, Chapter 3, Utah
231     Administrative Rulemaking Act, except that the administration is not subject to Subsections
232     63G-3-301(6) and (7) and Section 63G-3-601, and the director, with the board's approval, may
233     establish a procedure for the expedited approval of rules, based on written findings by the
234     director showing:
235          (i) the changes in business opportunities affecting the assets of the trust;
236          (ii) the specific business opportunity arising out of those changes which may be lost
237     without the rule or changes to the rule;
238          (iii) the reasons the normal procedures under Section 63G-3-301 cannot be met without
239     causing the loss of the specific opportunity;
240          (iv) approval by at least five board members; and
241          (v) that the director has filed a copy of the rule and a rule analysis, stating the specific
242     reasons and justifications for its findings, with the Office of Administrative Rules and notified
243     interested parties as provided in Subsection 63G-3-301(10).
244          (d) (i) The administration shall comply with Title 67, Chapter 19, Utah State Personnel

245     Management Act, except as provided in this Subsection (3)(d).
246          (ii) The board may approve, upon recommendation of the director, that exemption for
247     specific positions under Subsections 67-19-12(2) and 67-19-15(1) is required in order to enable
248     the administration to efficiently fulfill its responsibilities under the law. The director shall
249     consult with the executive director of the Department of Human Resource Management prior
250     to making such a recommendation.
251          (iii) The positions of director, deputy director, associate director, assistant director,
252     legal counsel appointed under Section 53C-1-305, administrative assistant, and public affairs
253     officer are exempt under Subsections 67-19-12(2) and 67-19-15(1).
254          (iv) Salaries for exempted positions, except for the director, shall be set by the director,
255     after consultation with the executive director of the Department of Human Resource
256     Management, within ranges approved by the board. The board and director shall consider
257     salaries for similar positions in private enterprise and other public employment when setting
258     salary ranges.
259          (v) The board may create an annual incentive and bonus plan for the director and other
260     administration employees designated by the board, based upon the attainment of financial
261     performance goals and other measurable criteria defined and budgeted in advance by the board.
262          (e) The administration shall comply with Title 63G, Chapter 6a, Utah Procurement
263     Code, except where the board approves, upon recommendation of the director, exemption from
264     the Utah Procurement Code, and simultaneous adoption of rules under Title 63G, Chapter 3,
265     Utah Administrative Rulemaking Act, for procurement, which enable the administration to
266     efficiently fulfill its responsibilities under the law.
267          (f) (i) Except as provided in Subsection (3)(f)(ii), the administration is not subject to
268     the fee agency requirements of Section 63J-1-504.
269          (ii) The following fees of the administration are subject to the requirements of Section
270     63J-1-504: application, assignment, amendment, affidavit for lost documents, name change,
271     reinstatement, grazing nonuse, extension of time, partial conveyance, patent reissue, collateral
272     assignment, electronic payment, and processing.
273          [(g) (i) The administration is not subject to Subsection 63J-1-206(3)(f).]
274          (g) (i) Notwithstanding Subsection 63J-1-206(2)(c), the administration may transfer
275     funds between its line items.

276          (ii) Before transferring appropriated funds between line items, the administration shall
277     submit a proposal to the board for its approval.
278          (iii) If the board gives approval to a proposal to transfer appropriated funds between
279     line items, the administration shall submit the proposal to the Legislative Executive
280     Appropriations Committee for its review and recommendations.
281          (iv) The Legislative Executive Appropriations Committee may recommend:
282          (A) that the administration transfer the appropriated funds between line items;
283          (B) that the administration not transfer the appropriated funds between line items; or
284          (C) to the governor that the governor call a special session of the Legislature to
285     supplement the appropriated budget for the administration.
286          (4) The administration is managed by a director of school and institutional trust lands
287     appointed by a majority vote of the board of trustees with the consent of the governor.
288          (5) (a) The board of trustees shall provide policies for the management of the
289     administration and for the management of trust lands and assets.
290          (b) The board shall provide policies for the ownership and control of Native American
291     remains that are discovered or excavated on school and institutional trust lands in consultation
292     with the Division of Indian Affairs and giving due consideration to Title 9, Chapter 9, Part 4,
293     Native American Grave Protection and Repatriation Act. The director may make rules in
294     accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, to implement
295     policies provided by the board regarding Native American remains.
296          (6) In connection with joint ventures and other transactions involving trust lands and
297     minerals approved under Sections 53C-1-303 and 53C-2-401, the administration, with board
298     approval, may become a member of a limited liability company under Title 48, Chapter 3a,
299     Utah Revised Uniform Limited Liability Company Act, as appropriate pursuant to Section
300     48-3a-1405 and is considered a person under Section 48-3a-102.
301          (7) Subject to the requirements of Subsection 63E-1-304(2), the administration may
302     participate in coverage under the Risk Management Fund created by Section 63A-4-201.
303          Section 8. Section 54-5-1.5 is amended to read:
304          54-5-1.5. Special regulation fee -- Supplemental Levy Committee -- Supplemental
305     fee -- Fee for electrical cooperatives.
306          (1) (a) A special fee to defray the cost of regulation is imposed upon all public utilities

307     subject to the jurisdiction of the Public Service Commission.
308          (b) The special fee is in addition to any charge now assessed, levied, or required by
309     law.
310          (2) (a) The executive director of the Department of Commerce shall determine the
311     special fee for the Department of Commerce.
312          (b) The chair of the Public Service Commission shall determine the special fee for the
313     Public Service Commission.
314          (c) The fee shall be assessed as a uniform percentage of the gross operating revenue for
315     the preceding calendar year derived from each public utility's business and operations during
316     that period within this state, excluding income derived from interstate business. Gross
317     operating revenue shall not include income to a wholesale electric cooperative derived from the
318     sale of power to a rural electric cooperative which resells that power within the state.
319          (3) (a) The executive director of the Department of Commerce shall notify each public
320     utility subject to the provisions of this chapter of the amount of the fee.
321          (b) The fee is due and payable on or before July 1 of each year.
322          (4) (a) There is created a restricted account within the General Fund known as the
323     Public Utility Regulatory Restricted Account.
324          (b) Notwithstanding Subsection 13-1-2(3)(c), the Department of Commerce shall
325     deposit a fee assessed under this section into the Public Utility Regulatory Restricted Account.
326          (c) Within appropriations by the Legislature:
327          (i) the Department of Commerce may use the funds in the Public Utility Regulatory
328     Restricted Account to administer:
329          (A) the Division of Public Utilities; and
330          (B) the Office of Consumer Services; and
331          (ii) the Public Service Commission may use the funds in the Public Utility Regulatory
332     Restricted Account to administer the Public Service Commission.
333          (d) At the end of each fiscal year, the director of the Division of Finance shall transfer
334     into the General Fund any balance in the Public Utility Regulatory Restricted Account in
335     excess of $3,000,000.
336          (5) (a) The Legislature intends that the public utilities provide all of the funds for the
337     administration, support, and maintenance of:

338          (i) the Public Service Commission;
339          (ii) state agencies within the Department of Commerce involved in the regulation of
340     public utilities; and
341          (iii) expenditures by the attorney general for utility regulation.
342          (b) Notwithstanding Subsection (5)(a), the fee imposed by Subsection (1) shall not
343     exceed the greater of:
344          (i) (A) for a public utility other than an electrical cooperative, .3% of the public utility's
345     gross operating revenues for the preceding calendar year; or
346          (B) for an electrical cooperative, .15% of the electrical cooperative's gross operating
347     revenues for the preceding calendar year; or
348          (ii) $50.
349          (6) (a) There is created a Supplemental Levy Committee to levy additional assessments
350     on public utilities when unanticipated costs of regulation occur in any fiscal year.
351          (b) The Supplemental Levy Committee shall consist of:
352          (i) one member selected by the executive director of the Department of Commerce;
353          (ii) one member selected by the chairman of the Public Service Commission;
354          (iii) two members selected by the three public utilities that paid the largest percent of
355     the current regulatory fee; and
356          (iv) one member selected by the four appointed members.
357          (c) (i) The members of the Supplemental Levy Committee shall be selected within 10
358     working days after the executive director of the Department of Commerce gives written notice
359     to the Public Service Commission and the public utilities that a supplemental levy committee is
360     needed.
361          (ii) If the members of the Supplemental Levy Committee have not been appointed
362     within the time prescribed, the governor shall appoint the members of the Supplemental Levy
363     Committee.
364          (d) (i) During any state fiscal year, the Supplemental Levy Committee, by a majority
365     vote and subject to audit by the state auditor, may impose a supplemental fee on the regulated
366     utilities for the purpose of defraying any increased cost of regulation.
367          (ii) The supplemental fee imposed upon the utilities shall equal a percentage of their
368     gross operating revenue for the preceding calendar year.

369          (iii) The aggregate of all fees, including any supplemental fees assessed, shall not
370     exceed .3% of the gross operating revenue of the utilities assessed for the preceding calendar
371     year.
372          (iv) Payment of the supplemental fee is due within 30 days after receipt of the
373     assessment.
374          (v) The utility may, within 10 days after receipt of assessment, request a hearing before
375     the Public Service Commission if it questions the need for, or the reasonableness of, the
376     supplemental fee.
377          (e) (i) Any supplemental fee collected to defray the cost of regulation shall be
378     transferred to the state treasurer as a departmental collection [according to the provisions of
379     Section 63J-1-104].
380          (ii) Supplemental fees are excess collections, credited according to the procedures of
381     Section [63J-1-104] 63J-1-105.
382          (iii) Charges billed to the Department of Commerce by any other state department,
383     institution, or agency for services rendered in connection with regulation of a utility shall be
384     credited by the state treasurer from the special or supplemental fees collected to the
385     appropriations account of the entity providing that service according to the procedures provided
386     in Title 63J, Chapter 1, Budgetary Procedures Act.
387          (7) (a) For purposes of this section, "electrical cooperative" means:
388          (i) a distribution electrical cooperative; or
389          (ii) a wholesale electrical cooperative.
390          (b) Subject to Subsection (7)(c), if the regulation of one or more electrical cooperatives
391     causes unanticipated costs of regulation in a fiscal year, the commission may impose a
392     supplemental fee on the one or more electrical cooperatives in this state responsible for the
393     increased cost of regulation.
394          (c) The aggregate of all fees imposed under this section on an electrical cooperative in
395     a calendar year shall not exceed the greater of:
396          (i) .3% of the electrical cooperative's gross operating revenues for the preceding
397     calendar year; or
398          (ii) $50.
399          Section 9. Section 62A-1-111.5 is amended to read:

400          62A-1-111.5. Duties of the department for fiscal year 2018.
401          Notwithstanding [Section] Subsection 63J-1-206(2)(c), for fiscal year 2018 only, the
402     department may transfer money from savings related to implementation of Laws of Utah 2017,
403     Chapter 330, and nonlapsing balances from fiscal year 2017 between appropriation line items
404     to allocate resources between the Division of Juvenile Justice Services, the Division of Child
405     and Family Services, and the Division of Substance Abuse and Mental Health to facilitate the
406     department's implementation of Laws of Utah 2017, Chapter 330.
407          Section 10. Section 62A-1-202 is amended to read:
408          62A-1-202. National Professional Men's Basketball Team Support of Women and
409     Children Issues Restricted Account.
410          (1) There is created in the General Fund a restricted account known as the "National
411     Professional Men's Basketball Team Support of Women and Children Issues Restricted
412     Account."
413          (2) The account shall be funded by:
414          (a) contributions deposited into the account in accordance with Section 41-1a-422;
415          (b) private contributions; and
416          (c) donations or grants from public or private entities.
417          (3) Upon appropriation by the Legislature, the department shall distribute funds in the
418     account to one or more charitable organizations that:
419          (a) qualify as being tax exempt under Section 501(c)(3) of the Internal Revenue Code;
420          (b) have a board that is appointed by the owners that, either on an individual or joint
421     basis, own a controlling interest in a legal entity that is a franchised member of the
422     internationally recognized national governing body for professional men's basketball in the
423     United States;
424          (c) are headquartered within the state;
425          (d) create or support programs that focus on issues affecting women and children
426     within the state, with an emphasis on health and education; and
427          (e) have a board of directors that disperses all funds of the organization.
428          (4) (a) An organization described in Subsection (3) may apply to the department to
429     receive a distribution in accordance with Subsection (3).
430          (b) An organization that receives a distribution from the department in accordance with

431     Subsection (3) shall expend the distribution only to:
432          (i) create or support programs that focus on issues affecting women and children, with
433     an emphasis on health and education;
434          (ii) create or sponsor programs that will benefit residents within the state; and
435          (iii) pay the costs of issuing or reordering National Professional Men's Basketball
436     Team Support of Women and Children Issues support special group license plate decals.
437          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
438     department may make rules providing procedures for an organization to apply to the
439     department to receive a distribution under this Subsection (4).
440          (5) In accordance with Section [63J-1-602.4] 63J-1-602.1, appropriations from the
441     account are nonlapsing.
442          Section 11. Section 63I-1-263 is amended to read:
443          63I-1-263. Repeal dates, Titles 63A to 63N.
444          (1) Subsection 63A-5-104(4)(h) is repealed on July 1, 2024.
445          (2) Section 63A-5-603, State Facility Energy Efficiency Fund, is repealed July 1, 2023.
446          (3) Title 63C, Chapter 4a, Constitutional and Federalism Defense Act, is repealed July
447     1, 2018.
448          (4) Title 63C, Chapter 4b, Commission for the Stewardship of Public Lands, is
449     repealed November 30, 2019.
450          (5) Title 63C, Chapter 16, Prison Development Commission Act, is repealed July 1,
451     2020.
452          (6) Title 63C, Chapter 17, Point of the Mountain Development Commission Act, is
453     repealed July 1, 2021.
454          (7) Title 63C, Chapter 18, Mental Health Crisis Line Commission, is repealed July 1,
455     2018.
456          (8) Title 63G, Chapter 21, Agreements to Provide State Services, is repealed July 1,
457     2023.
458          (9) Title 63H, Chapter 4, Heber Valley Historic Railroad Authority, is repealed July 1,
459     2020.
460          (10) Title 63H, Chapter 8, Utah Housing Corporation Act, is repealed July 1, 2026.
461          (11) On July 1, 2025:

462          (a) in Subsection 17-27a-404(3)(c)(ii), the language that states "the Resource
463     Development Coordinating Committee," is repealed;
464          (b) Subsection 23-14-21(2)(c) is amended to read "(c) provide notification of proposed
465     sites for the transplant of species to local government officials having jurisdiction over areas
466     that may be affected by a transplant.";
467          (c) in Subsection 23-14-21(3), the language that states "and the Resource Development
468     Coordinating Committee" is repealed;
469          (d) in Subsection 23-21-2.3(1), the language that states "the Resource Development
470     Coordinating Committee created in Section 63J-4-501 and" is repealed;
471          (e) in Subsection 23-21-2.3(2), the language that states "the Resource Development
472     Coordinating Committee and" is repealed;
473          (f) Subsection 63J-4-102(1) is repealed and the remaining subsections are renumbered
474     accordingly;
475          (g) Subsections 63J-4-401(5)(a) and (c) are repealed;
476          (h) Subsection 63J-4-401(5)(b) is renumbered to Subsection 63J-4-401(5)(a) and the
477     word "and" is inserted immediately after the semicolon;
478          (i) Subsection 63J-4-401(5)(d) is renumbered to Subsection 63J-4-401(5)(b);
479          (j) Sections 63J-4-501, 63J-4-502, 63J-4-503, 63J-4-504, and 63J-4-505 are repealed;
480     and
481          (k) Subsection 63J-4-603(1)(e)(iv) is repealed and the remaining subsections are
482     renumbered accordingly.
483          (12) (a) Subsection [63J-1-602.4(15)] 63J-1-602.1(49) is repealed July 1, 2022.
484          (b) When repealing Subsection [63J-1-602.4(15)] 63J-1-602.1(49), the Office of
485     Legislative Research and General Counsel shall, in addition to the office's authority under
486     Subsection 36-12-12(3), make necessary changes to subsection numbering and cross
487     references.
488          (13) The Crime Victim Reparations and Assistance Board, created in Section
489     63M-7-504, is repealed July 1, 2027.
490          (14) Title 63M, Chapter 11, Utah Commission on Aging, is repealed July 1, 2027.
491          (15) Title 63N, Chapter 2, Part 2, Enterprise Zone Act, is repealed July 1, 2018.
492          (16) (a) Title 63N, Chapter 2, Part 4, Recycling Market Development Zone Act, is

493     repealed January 1, 2021.
494          (b) Subject to Subsection (16)(c), Sections 59-7-610 and 59-10-1007 regarding tax
495     credits for certain persons in recycling market development zones, are repealed for taxable
496     years beginning on or after January 1, 2021.
497          (c) A person may not claim a tax credit under Section 59-7-610 or 59-10-1007:
498          (i) for the purchase price of machinery or equipment described in Section 59-7-610 or
499     59-10-1007, if the machinery or equipment is purchased on or after January 1, 2021; or
500          (ii) for an expenditure described in Subsection 59-7-610(1)(b) or 59-10-1007(1)(b), if
501     the expenditure is made on or after January 1, 2021.
502          (d) Notwithstanding Subsections (16)(b) and (c), a person may carry forward a tax
503     credit in accordance with Section 59-7-610 or 59-10-1007 if:
504          (i) the person is entitled to a tax credit under Section 59-7-610 or 59-10-1007; and
505          (ii) (A) for the purchase price of machinery or equipment described in Section
506     59-7-610 or 59-10-1007, the machinery or equipment is purchased on or before December 31,
507     2020; or
508          (B) for an expenditure described in Subsection 59-7-610(1)(b) or 59-10-1007(1)(b), the
509     expenditure is made on or before December 31, 2020.
510          (17) Section 63N-2-512 is repealed on July 1, 2021.
511          (18) (a) Title 63N, Chapter 2, Part 6, Utah Small Business Jobs Act, is repealed
512     January 1, 2021.
513          (b) Section 59-9-107 regarding tax credits against premium taxes is repealed for
514     calendar years beginning on or after January 1, 2021.
515          (c) Notwithstanding Subsection (18)(b), an entity may carry forward a tax credit in
516     accordance with Section 59-9-107 if:
517          (i) the person is entitled to a tax credit under Section 59-9-107 on or before December
518     31, 2020; and
519          (ii) the qualified equity investment that is the basis of the tax credit is certified under
520     Section 63N-2-603 on or before December 31, 2023.
521          (19) Title 63N, Chapter 9, Part 2, Outdoor Recreational Infrastructure Grant Program,
522     is repealed January 1, 2023.
523          (20) Title 63N, Chapter 12, Part 3, Utah Broadband Outreach Center, is repealed July

524     1, 2018.
525          (21) Title 63N, Chapter 12, Part 4, Career and Technical Education Board, is repealed
526     July 1, 2018.
527          Section 12. Section 63I-2-263 is amended to read:
528          63I-2-263. Repeal dates, Title 63A to Title 63N.
529          (1) Section 63A-5-227 is repealed on January 1, 2018.
530          (2) Section 63H-7a-303 is repealed on July 1, 2022.
531          (3) On July 1, 2019:
532          (a) in Subsection 63J-1-206[(3)](2)(c)(i), the language that states "[(i) Except as
533     provided in] Subsection [(3)](2)(c)(ii) and" is repealed; and
534          (b) Subsection 63J-1-206[(3)](2)(c)(ii) is repealed.
535          (4) Subsection 63N-3-109(2)(f)(i)(B) is repealed July 1, 2020.
536          (5) Section 63N-3-110 is repealed July 1, 2020.
537          Section 13. Section 63J-1-102 is amended to read:
538          63J-1-102. Definitions.
539          As used in this chapter:
540          (1) "Agency" means a unit of accounting, typically associated with a department,
541     division, board, council, committee, institution, office, bureau, or other similar administrative
542     unit of state government, that includes line items and programs.
543          (2) "Budget execution plan" means a Ĥ→ [
detailed] ←Ĥ proposal submitted
543a     by an administrative
544     unit of state government to the Division of Finance enumerating expected revenues and
545     authorized expenditures within line items and among programs.
546          [(1)] (3) "Debt service" means the money that is required annually to cover the
547     repayment of interest and principal on state debt.
548          [(2)] (4) (a) "Dedicated credits" means collections by an agency that are deposited
549     directly into an account for expenditure [on a separate line item and program] by the agency.
550          (b) "Dedicated credits" includes collections from assessments, contributions,
551     donations, fees, fines, licenses, penalties, rental, sales, non-federal grants, or other collections
552     not:
553          (i) otherwise designated by law for deposit into another fund or account; or
554          (ii) specifically excluded from the definition.

555          (c) "Dedicated credits" does not mean:
556          (i) federal revenues and the related pass through or the related state match paid by one
557     agency to another;
558          (ii) revenues that are not deposited in governmental funds; or
559          (iii) revenues from any contracts.
560          [(3)] (5) "Federal revenues" means collections by an agency from a federal source that
561     are deposited into an account for expenditure [on a separate line item and program] by the
562     agency.
563          [(4) "Fixed collections" means collections that are:]
564          [(a) fixed at a specific amount by law or by an appropriation act; and]
565          [(b) required to be deposited into a separate line item and program.]
566          [(5)] (6) "Free revenue" includes:
567          (a) collections that are required by law to be deposited in:
568          (i) the General Fund;
569          (ii) the Education Fund;
570          (iii) the Uniform School Fund; or
571          (iv) the Transportation Fund;
572          (b) collections that are not otherwise designated by law;
573          (c) collections that are not externally restricted; and
574          (d) collections that are not included in an approved work program.
575          (7) (a) "Item of appropriation" means an authorization of expenditure contained in
576     legislation that appropriates funds and includes the following:
577          (i) the name of the agency and line item to which authorization is granted; and
578          (ii) sources of finance from which authorization is granted and associated amounts
579     authorized.
580          (b) "Item of appropriation" also includes:
581          (i) a schedule of programs;
582          (ii) intent language;
583          (iii) approved full-time equivalent employment;
584          (iv) authorized capital outlay; and
585          (v) other conditions of appropriation.

586          (8) "Line item" means a unit of accounting, typically representing an administrative
587     unit of state government within an agency, that contains one or more programs.
588          [(6)] (9) "Major revenue types" means:
589          (a) free revenue;
590          (b) restricted revenue; and
591          (c) dedicated credits[; and].
592          [(d) fixed collections.]
593          (10) "Program" means a unit of accounting included on a schedule of programs within
594     a line item used to track budget authorizations, collections, and expenditures on specific
595     purposes or functions.
596          [(7)] (11) "Restricted revenue" means collections that are:
597          (a) deposited, by law, into a separate fund, subfund, or account; and
598          (b) designated for a specific program or purpose.
599          (12) "Schedule of programs" means a list of programs and associated authorization
600     amounts within an item of appropriation.
601          Section 14. Section 63J-1-104 is amended to read:
602          63J-1-104. Revenue types -- Disposition of free revenue and restricted revenue.
603          (1) (a) The Division of Finance shall:
604          (i) account for revenues in accordance with generally accepted accounting principles;
605     and
606          (ii) use the major revenue types in internal accounting.
607          (b) Each agency shall:
608          (i) use the major revenue types to account for revenues;
609          (ii) deposit revenues and other public funds received by them by following the
610     procedures and requirements of Title 51, Chapter 7, State Money Management Act; and
611          (iii) expend revenues and public funds as required by this chapter.
612          (2) (a) Each agency shall deposit its free revenues into the appropriate fund.
613          (b) An agency may expend free revenues up to the amount specifically appropriated by
614     the Legislature.
615          (c) Any free revenue funds appropriated by the Legislature to an agency that remain
616     unexpended at the end of the fiscal year lapse to the source fund unless the Legislature provides

617     by law that those funds are nonlapsing.
618          (3) (a) Each agency shall deposit its restricted revenues into the applicable restricted
619     account or fund.
620          (b) Revenues in a restricted account or fund do not lapse to another account or fund
621     unless otherwise specifically provided for by law or legislative appropriation.
622          (c) The Legislature may appropriate restricted revenues from a restricted account or
623     fund for the specific purpose or program designated by law.
624          (d) If the fund equity of a restricted account or fund is insufficient to provide the
625     accounts appropriated from it by the Legislature, the Division of Finance may reduce the
626     appropriation to a level that ensures that the fund equity is not less than zero.
627          (e) Any restricted revenues appropriated by the Legislature to an agency that remain
628     unexpended at the end of the fiscal year lapse to the applicable restricted account or fund unless
629     the Legislature provides by law that those appropriations, or the program or line item financed
630     by those appropriations, are nonlapsing.
631          [(4) (a) An agency may expend dedicated credits for any purpose within the program or
632     line item.]
633          [(b) (i) Except as provided in Subsection (4)(b)(ii), an agency may not expend
634     dedicated credits in excess of the amount appropriated as dedicated credits by the Legislature.]
635          [(ii) In order to expend dedicated credits in excess of the amount appropriated as
636     dedicated credits by the Legislature, the following procedure shall be followed:]
637          [(A) The agency seeking to make the excess expenditure shall:]
638          [(I) develop a new work program that:]
639          [(Aa) consists of the currently approved work program and the excess expenditure
640     sought to be made; and]
641          [(Bb) complies with the requirements of Section 63J-2-202;]
642          [(II) prepare a written justification for the new work program that sets forth the purpose
643     and necessity of the excess expenditure; and]
644          [(III) submit the new work program and the written justification for the new work
645     program to the Division of Finance.]
646          [(B) The Division of Finance shall process the new work program with written
647     justification and make this information available to the Governor's Office of Management and

648     Budget and the legislative fiscal analyst.]
649          [(iii) An expenditure of dedicated credits in excess of amounts appropriated as
650     dedicated credits by the Legislature may not be used to permanently increase personnel within
651     the agency unless:]
652          [(A) the increase is approved by the Legislature; or]
653          [(B) the money is deposited as a dedicated credit in a line item covering tuition or
654     federal vocational funds at an institution of higher education.]
655          [(c) (i) All excess dedicated credits lapse to the appropriate fund at the end of the fiscal
656     year unless the Legislature has designated the entire program or line item that is partially or
657     fully funded from dedicated credits as nonlapsing.]
658          [(ii) The Division of Finance shall determine the appropriate fund into which the
659     dedicated credits lapse.]
660          [(5) (a) The Legislature may establish by law the maximum amount of fixed collections
661     that an agency may expend.]
662          [(b) If an agency receives less than the maximum amount of expendable fixed
663     collections established by law, the agency's authority to expend is limited to the amount of
664     fixed collections that it receives.]
665          [(c) If an agency receives fixed collections greater than the maximum amount of
666     expendable fixed collections established by law, those excess amounts lapse to the General
667     Fund, the Education Fund, the Transportation Fund, or the Transportation Investment Fund of
668     2005 as designated by the director of the Division of Finance at the end of the fiscal year.]
669          [(6)] (4) Unless otherwise specifically provided by law, when an agency has a program
670     or line item that is funded by [more than one major revenue type: (a) the agency shall expend
671     its dedicated credits and fixed collections first; and (b) if the program or line item includes]
672     both free revenue and restricted revenue, an agency shall expend those revenues based upon a
673     proration of the amounts appropriated from each of those major revenue types.
674          Section 15. Section 63J-1-105 is enacted to read:
675          63J-1-105. Revenue types -- Disposition of dedicated credits.
676          (1) An agency may expend dedicated credits for any purpose within the program or line
677     item.
678          (2) Except as provided in Subsections (3) and (4), an agency may not expend dedicated

679     credits in excess of the amount appropriated to a line item as dedicated credits by the
680     Legislature.
681          (3) Each agency that receives dedicated credits revenue greater than the amount
682     appropriated to a line item by the Legislature in the annual appropriations acts may expend the
683     excess up to 25% of the amount appropriated if the expenditure is included in a revised budget
684     execution plan approved as provided in Section 63J-1-209.
685          (4) Notwithstanding the requirements of Subsection (3), when an agency's dedicated
686     credits revenue represents over 90% of the budget of the line item for which the dedicated
687     credits are collected, the agency may expend 100% of the excess of the amount appropriated if
688     the expenditure is authorized by an amended budget execution plan approved as provided in
689     Subsection (3) and Section 63J-1-209.
690          (5) An expenditure of dedicated credits in excess of amounts appropriated to a line
691     item as dedicated credits by the Legislature may not be used to permanently increase personnel
692     within the agency unless:
693          (a) the increase is approved by the Legislature; or
694          (b) the money is deposited as a dedicated credit in a line item covering tuition or
695     federal vocational funds at an institution of higher education.
696          (6) (a) All excess dedicated credits not received or expended in compliance with
697     Subsection (3) or (4) lapse to the General Fund or other appropriate fund as free or restricted
698     revenue at the end of the fiscal year.
699          (b) The Division of Finance shall determine the appropriate fund into which the
700     dedicated credits lapse.
701          (7) (a) When an agency has a line item that is funded by more than one major revenue
702     type, one of which is dedicated credits, the agency shall completely expend authorized
703     dedicated credits within the current fiscal year and allocate unused spending authorization
704     among other funding sources based upon a proration of the amounts appropriated from each of
705     those major revenue types not attributable to dedicated credits, unless the Legislature has
706     designated a portion of the dedicated credits as nonlapsing, in which case the agency shall
707     completely expend within the current fiscal year authorized dedicated credits minus the portion
708     of dedicated credits designated as nonlapsing, and allocate unused spending authorization
709     among the other funding sources based upon a proration of the amounts appropriated from each

710     of those major revenue types not attributable to dedicated credits.
711          (b) Nothing in Subsection (7)(a) shall be construed to allow an agency to receive and
712     expend dedicated credits in excess of legislative appropriations to a line item without
713     complying with Subsection (3) or (4).
714          (c) Each agency that receives dedicated credits shall report, to the Division of Finance,
715     any balances remaining in those funds at the conclusion of each fiscal year.
716          (8) Each agency shall include in its annual budget request estimates of dedicated
717     credits revenue that is identified by, collected for, or set by the agency.
718          Section 16. Section 63J-1-206 is amended to read:
719          63J-1-206. Appropriations governed by chapter -- Restrictions on expenditures --
720     Transfer of funds -- Exclusion.
721          [(1) As used in this section, "work program" means a budget that contains revenues
722     and expenditures for specific purposes or functions within an item of appropriation.]
723          [(2)] (1) (a) Except as provided in Subsection (2)(b), (3)(e), or where expressly
724     exempted in the appropriating act:
725          (i) all money appropriated by the Legislature is appropriated upon the terms and
726     conditions set forth in this chapter; and
727          (ii) any department, agency, or institution that accepts money appropriated by the
728     Legislature does so subject to the requirements of this chapter.
729          (b) This section does not apply to:
730          (i) the Legislature and its committees; and
731          (ii) the Investigation Account of the Water Resources Construction Fund, which is
732     governed by Section 73-10-8.
733          [(3)] (2) (a) Each item of appropriation [item] is to be expended subject to any
734     schedule of programs and any restriction attached to the item of appropriation [item], as
735     designated by the Legislature.
736          (b) Each schedule of programs or restriction attached to an appropriation item:
737          (i) is a restriction or limitation upon the expenditure of the respective appropriation
738     made;
739          (ii) does not itself appropriate any money; and
740          (iii) is not itself an item of appropriation.

741          (c) (i) Except as provided in Subsection [(3)] (2)(c)(ii) and Subsection (2)(c)(iii), an
742     appropriation or any surplus of any appropriation may not be diverted from any department,
743     agency, institution, [or] division, or line item to any other department, agency, institution, [or]
744     division, or line item.
745          (ii) Until July 1, 2019, the Department of Workforce Services may transfer or divert
746     money to another department, agency, institution, [or] division, or line item only for the
747     purposes of law enforcement, adjudication, corrections, and providing and addressing services
748     for homeless individuals and families.
749          (iii) The state superintendent may transfer money appropriated for the Minimum
750     School Program between line items in accordance with Section 53F-2-205.
751          (d) The money appropriated subject to a schedule [or] of programs or restriction may
752     be used only for the purposes authorized.
753          (e) In order for a department, agency, or institution to transfer money appropriated to it
754     from one program to another program within [an item of appropriation, the following
755     procedure shall be followed:] a line item, the department, agency, or institution shall revise its
756     budget execution plan as provided in Section 63J-1-209.
757          [(i) The department, agency, or institution seeking to make the transfer shall prepare:]
758          [(A) a new work program for the fiscal year involved that consists of the currently
759     approved work program and the transfer sought to be made; and]
760          [(B) a written justification for the new work program that sets forth the purpose and
761     necessity for the transfer.]
762          [(ii) The Division of Finance shall process the new work program with written
763     justification and make this information available to the Governor's Office of Management and
764     Budget and the legislative fiscal analyst.]
765          [(f) (i) Except as provided in Subsection (3)(f)(ii), money may not be transferred from
766     one item of appropriation to any other item of appropriation.]
767          [(ii) The state superintendent may transfer money appropriated for the Minimum
768     School Program between line items of appropriation in accordance with Section 53A-17a-105.]
769          [(g)] (f) (i) The procedures for transferring money between programs within [an item of
770     appropriation] a line item as provided by Subsection [(3)] (2)(e) do not apply to money
771     appropriated to the State Board of Education for the Minimum School Program or capital

772     outlay programs created in Title 53A, Chapter 21, Public Education Capital Outlay Act.
773          (ii) The state superintendent may transfer money appropriated for the programs
774     specified in Subsection [(3)(g)(i)] (2)(f)(i) only as provided by Section 53A-17a-105.
775          Section 17. Section 63J-1-209 is amended to read:
776          63J-1-209. Director of finance to exercise accounting control -- Budget execution
777     plans -- Allotments and expenditures.
778          (1) The director of finance shall exercise accounting control over all state departments,
779     institutions, and agencies other than the Legislature and legislative committees.
780          (2) (a) The director shall require the head of each department to submit, by May 15 of
781     each year, a [work program] budget execution plan for the next fiscal year.
782          (b) The director may require any department to submit a [work program] budget
783     execution plan for any other period.
784          (3) The [work program] budget execution plan shall include appropriations and all
785     other funds from any source made available to the department for its operation and
786     maintenance for the period and program authorized by [the appropriation act] legislation that
787     appropriates funds.
788          [(4) Subject to the requirements of Subsection 63J-1-206(3)(e), the Division of Finance
789     shall, upon request from the governor, revise, alter, decrease, or change work programs.]
790          (4) (a) In order to revise a budget execution plan, the department, agency, or institution
791     seeking to revise the budget execution plan shall:
792          (i) develop a new budget execution plan that consists of the currently approved budget
793     execution plan and the revision sought to be made;
794          (ii) prepare a written justification for the new budget execution plan that sets forth the
795     purpose and necessity of the revision; and
796          (iii) submit the new budget execution plan and the written justification for the new
797     budget execution plan to the Division of Finance.
798          (b) The Division of Finance shall process the new budget execution plan with written
799     justification and make this information available to the Governor's Office of Management and
800     Budget and the legislative fiscal analyst.
801          (5) Upon request from the Governor's Office of Management and Budget, the Division
802     of Finance shall revise budget execution plans.

803          [(5)] (6) Notwithstanding the requirements of Title 63J, Chapter 2, Revenue
804     Procedures and Control Act, the aggregate of the [work program changes] budget execution
805     plan revisions may not exceed the total appropriations or other funds from any source that are
806     available to the [department] agency line item for the fiscal year in question.
807          [(6) The Division of Finance shall transmit a copy of the changes, when approved by
808     the governor, to:]
809          [(a) the head of the department concerned; and]
810          [(b) the legislative analyst.]
811          (7) Upon [request, review, and approval by the governor] transmittal of the new budget
812     execution plan to the entities in Subsection (5), the Division of Finance shall permit all
813     expenditures to be made from the appropriations or other funds from any source on the basis of
814     those [work programs] budget execution plans.
815          (8) The Division of Finance shall, through statistical sampling methods or other means,
816     audit all claims against the state for which an appropriation has been made.
817          Section 18. Section 63J-1-217 is amended to read:
818          63J-1-217. Overexpenditure of budget by agency -- Prorating budget income
819     shortfall.
820          (1) Expenditures of departments, agencies, and institutions of state government shall be
821     kept within revenues available for such expenditures.
822          (2) (a) Line items of appropriation shall not be overexpended.
823          (b) Notwithstanding Subsection (2)(a), if an agency's line item is overexpended at the
824     close of a fiscal year:
825          (i) the director of the Division of Finance may make payments from the line item to
826     vendors for goods or services that were received on or before June 30; and
827          (ii) the director of the Division of Finance shall immediately reduce the agency's line
828     item budget in the current year by the amount of the overexpenditure.
829          (c) Each agency with an overexpended line item shall:
830          (i) prepare a written report explaining the reasons for the overexpenditure; and
831          (ii) present the report to:
832          (A) the Board of Examiners as required by Section 63G-9-301; and
833          (B) the Office of the Legislative Fiscal Analyst.

834          (3) (a) As used in this Subsection (3):
835          (i) "Education Fund budget deficit" has the same meaning as in Section 63J-1-312; and
836          (ii) "General Fund budget deficit" has the same meaning as in Section 63J-1-312.
837          (b) If an Education Fund budget deficit or a General Fund budget deficit exists and the
838     adopted estimated revenues were prepared in consensus with the Governor's Office of
839     Management and Budget, the governor shall:
840          (i) direct state agencies to reduce commitments and expenditures by an amount
841     proportionate to the amount of the deficiency; and
842          (ii) direct the Division of Finance to reduce allotments to institutions of higher
843     education by an amount proportionate to the amount of the deficiency.
844          (c) The governor's directions under Subsection (3)(b) are rescinded when the
845     Legislature rectifies the Education Fund budget deficit and the General Fund budget deficit.
846          (4) (a) A department may not receive an advance of funds that cannot be covered by
847     anticipated revenue within the [work program] budget execution plan of the fiscal year, unless
848     the governor allocates money from the governor's emergency appropriations.
849          (b) All allocations made from the governor's emergency appropriations shall be
850     reported to the budget subcommittee of the Legislative Management Committee by notifying
851     the Office of the Legislative Fiscal Analyst at least 15 days before the effective date of the
852     allocation.
853          (c) Emergency appropriations shall be allocated only to support activities having
854     existing legislative approval and appropriation, and may not be allocated to any activity or
855     function rejected directly or indirectly by the Legislature.
856          Section 19. Section 63J-1-601 is amended to read:
857          63J-1-601. End of fiscal year -- Unexpended balances -- Funds not to be closed
858     out -- Pending claims -- Transfer of amounts from item of appropriation -- Nonlapsing
859     accounts and funds -- Institutions of higher education to report unexpended balances.
860          (1) As used in this section, "transaction control number" means the unique numerical
861     identifier established by the Department of Health to track each medical claim and indicates the
862     date on which the claim is entered.
863          (2) On or before August 31 of each fiscal year, the director of the Division of Finance
864     shall close out to the proper fund or account all remaining unexpended and unencumbered

865     balances of appropriations made by the Legislature, except:
866          (a) those funds classified under Title 51, Chapter 5, Funds Consolidation Act, as:
867          (i) enterprise funds;
868          (ii) internal service funds;
869          (iii) trust and agency funds;
870          (iv) capital projects funds;
871          (v) discrete component unit funds;
872          (vi) debt service funds; and
873          (vii) permanent funds;
874          (b) those [revenue collections,] appropriations from a fund or account[,] or
875     appropriations to a program that are designated as nonlapsing under [Sections] Section
876     63J-1-602.1 [through 63J-1-602.5] or 63J-1-602.2;
877          (c) expendable special revenue funds, unless specifically directed to close out the fund
878     in the fund's enabling legislation;
879          (d) acquisition and development funds appropriated to the Division of Parks and
880     Recreation;
881          (e) funds encumbered to pay purchase orders issued prior to May 1 for capital
882     equipment if delivery is expected before June 30; and
883          (f) unexpended and unencumbered balances of appropriations that meet the
884     requirements of Section 63J-1-603.
885          (3) (a) Liabilities and related expenses for goods and services received on or before
886     June 30 shall be recognized as expenses due and payable from appropriations made prior to
887     June 30.
888          (b) The liability and related expense shall be recognized within time periods
889     established by the Division of Finance but shall be recognized not later than August 31.
890          (c) Liabilities and expenses not so recognized may be paid from regular departmental
891     appropriations for the subsequent fiscal year, if these claims do not exceed unexpended and
892     unencumbered balances of appropriations for the years in which the obligation was incurred.
893          (d) No amounts may be transferred from an item of appropriation of any department,
894     institution, or agency into the Capital Projects Fund or any other fund without the prior express
895     approval of the Legislature.

896          (4) (a) For purposes of this chapter, a claim processed under the authority of Title 26,
897     Chapter 18, Medical Assistance Act:
898          (i) is not a liability or an expense to the state for budgetary purposes, unless the
899     Division of Health Care Financing receives the claim within the time periods established by the
900     Division of Finance under Subsection (3)(b); and
901          (ii) is not subject to Subsection (3)(c).
902          (b) The transaction control number that the Division of Health Care Financing records
903     on each claim invoice is the date of receipt.
904          (5) (a) For purposes of this chapter, a claim processed in accordance with Title 35A,
905     Chapter 13, Utah State Office of Rehabilitation Act:
906          (i) is not a liability or an expense to the state for budgetary purposes, unless the Utah
907     State Office of Rehabilitation receives the claim within the time periods established by the
908     Division of Finance under Subsection (3)(b); and
909          (ii) is not subject to Subsection (3)(c).
910          (b) (i) The Utah State Office of Rehabilitation shall mark each claim invoice with the
911     date on which the Utah State Office of Rehabilitation receives the claim invoice.
912          (ii) The date described in Subsection (5)(b)(i) is the date of receipt for purposes of this
913     section.
914          (6) Any balance from an appropriation to a state institution of higher education that
915     remains unexpended at the end of the fiscal year shall be reported to the Division of Finance by
916     the September 1 following the close of the fiscal year.
917          Section 20. Section 63J-1-602 is amended to read:
918          63J-1-602. Nonlapsing appropriations.
919          (1) The [revenue collections,] appropriations from a fund or account[,] and
920     appropriations to a program that are listed in [Sections] Section 63J-1-602.1 [through
921     63J-1-602.5] or 63J-1-602.2 are nonlapsing.
922          (2) No [revenue collection,] appropriation from a fund or account[,] or appropriation to
923     a program may be treated as nonlapsing unless:
924          (a) it is listed in [Sections] Section 63J-1-602.1 [through 63J-1-602.5] or 63J-1-602.2;
925          (b) it is designated in a condition of appropriation in the appropriations bill; or
926          (c) nonlapsing authority is granted under Section 63J-1-603.

927          (3) Each legislative appropriations subcommittee shall review the accounts and funds
928     that have been granted nonlapsing authority under the provisions of this section or Section
929     63J-1-603.
930          Section 21. Section 63J-1-602.1 (Superseded 09/30/18) is repealed and reenacted to
931     read:
932          63J-1-602.1 (Superseded 09/30/18). List of nonlapsing appropriations from
933     accounts and funds.
934          Appropriations made from the following accounts or funds are nonlapsing:
935          (1) The Utah Intracurricular Student Organization Support for Agricultural Education
936     and Leadership Restricted Account created in Section 4-42-102.
937          (2) The Native American Repatriation Restricted Account created in Section 9-9-407.
938          (3) The Martin Luther King, Jr. Civil Rights Support Restricted Account created in
939     Section 9-18-102.
940          (4) The National Professional Men's Soccer Team Support of Building Communities
941     Restricted Account created in Section 9-19-102.
942          (5) Funds collected for directing and administering the C-PACE district created in
943     Section 11-42a-302.
944          (6) Award money under the State Asset Forfeiture Grant Program, as provided under
945     Section 24-4-117.
946          (7) Funds collected from the program fund for local health department expenses
947     incurred in responding to a local health emergency under Section 26-1-38.
948          (8) Funds collected from the emergency medical services grant program, as provided in
949     Section 26-8a-207.
950          (9) The Prostate Cancer Support Restricted Account created in Section 26-21a-303.
951          (10) The Children with Cancer Support Restricted Account created in Section
952     26-21a-304.
953          (11) State funds for matching federal funds in the Children's Health Insurance Program
954     as provided in Section 26-40-108.
955          (12) The Children with Heart Disease Support Restricted Account created in Section
956     26-58-102.
957          (13) The Technology Development Restricted Account created in Section 31A-3-104.

958          (14) The Criminal Background Check Restricted Account created in Section
959     31A-3-105.
960          (15) The Captive Insurance Restricted Account created in Section 31A-3-304, except
961     to the extent that Section 31A-3-304 makes the money received under that section free revenue.
962          (16) The Title Licensee Enforcement Restricted Account created in Section
963     31A-23a-415.
964          (17) The Health Insurance Actuarial Review Restricted Account created in Section
965     31A-30-115.
966          (18) The Insurance Fraud Investigation Restricted Account created in Section
967     31A-31-108.
968          (19) The Underage Drinking Prevention Media and Education Campaign Restricted
969     Account created in Section 32B-2-306.
970          (20) The Youth Development Organization Restricted Account created in Section
971     35A-8-1903.
972          (21) The Youth Character Organization Restricted Account created in Section
973     35A-8-2003.
974          (22) Money received by the Utah State Office of Rehabilitation for the sale of certain
975     products or services, as provided in Section 35A-13-202.
976          (23) The Oil and Gas Conservation Account created in Section 40-6-14.5.
977          (24) The Electronic Payment Fee Restricted Account created by Section 41-1a-121 to
978     the Motor Vehicle Division.
979          (25) The Motor Vehicle Enforcement Division Temporary Permit Restricted Account
980     created by Section 41-3-110 to the State Tax Commission.
981          (26) The Utah Law Enforcement Memorial Support Restricted Account created in
982     Section 53-1-120.
983          (27) The State Disaster Recovery Restricted Account to the Division of Emergency
984     Management, as provided in Section 53-2a-603.
985          (28) The Department of Public Safety Restricted Account to the Department of Public
986     Safety, as provided in Section 53-3-106.
987          (29) The Utah Highway Patrol Aero Bureau Restricted Account created in Section
988     53-8-303.

989          (30) The DNA Specimen Restricted Account created in Section 53-10-407.
990          (31) The Canine Body Armor Restricted Account created in Section 53-16-201.
991          (32) A certain portion of money collected for administrative costs under the School
992     Institutional Trust Lands Management Act, as provided under Section 53C-3-202.
993          (33) The School Readiness Restricted Account created in Section 53F-9-402.
994          (34) The Public Utility Regulatory Restricted Account created in Section 54-5-1.5,
995     subject to Subsection 54-5-1.5(4)(d).
996          (35) Certain fines collected by the Division of Occupational and Professional Licensing
997     for violation of unlawful or unprofessional conduct that are used for education and enforcement
998     purposes, as provided in Section 58-17b-505.
999          (36) Certain fines collected by the Division of Occupational and Professional Licensing
1000     for use in education and enforcement of the Security Personnel Licensing Act, as provided in
1001     Section 58-63-103.
1002          (37) The Relative Value Study Restricted Account created in Section 59-9-105.
1003          (38) The Cigarette Tax Restricted Account created in Section 59-14-204.
1004          (39) Funds paid to the Division of Real Estate for the cost of a criminal background
1005     check for a mortgage loan license, as provided in Section 61-2c-202.
1006          (40) Funds paid to the Division of Real Estate for the cost of a criminal background
1007     check for principal broker, associate broker, and sales agent licenses, as provided in Section
1008     61-2f-204.
1009          (41) Certain funds donated to the Department of Human Services, as provided in
1010     Section 62A-1-111.
1011          (42) The National Professional Men's Basketball Team Support of Women and
1012     Children Issues Restricted Account created in Section 62A-1-202.
1013          (43) Certain funds donated to the Division of Child and Family Services, as provided
1014     in Section 62A-4a-110.
1015          (44) The Choose Life Adoption Support Restricted Account created in Section
1016     62A-4a-608.
1017          (45) Funds collected by the Office of Administrative Rules for publishing, as provided
1018     in Section 63G-3-402.
1019          (46) The Immigration Act Restricted Account created in Section 63G-12-103.

1020          (47) Money received by the military installation development authority, as provided in
1021     Section 63H-1-504.
1022          (48) The Computer Aided Dispatch Restricted Account created in Section 63H-7a-303.
1023          (49) The Unified Statewide 911 Emergency Service Account created in Section
1024     63H-7a-304.
1025          (50) The Utah Statewide Radio System Restricted Account created in Section
1026     63H-7a-403.
1027          (51) The Employability to Careers Program Restricted Account created in Section
1028     63J-4-703.
1029          (52) The Motion Picture Incentive Account created in Section 63N-8-103.
1030          (53) Certain money payable for expenses of the Pete Suazo Utah Athletic Commission,
1031     as provided under Section 63N-10-301.
1032          (54) Funds collected by the housing of state probationary inmates or state parole
1033     inmates, as provided in Subsection 64-13e-104(2).
1034          (55) Certain forestry and fire control funds utilized by the Division of Forestry, Fire,
1035     and State Lands, as provided in Section 65A-8-103.
1036          (56) Certain funds received by the Office of the State Engineer for well drilling fines or
1037     bonds, as provided in Section 73-3-25.
1038          (57) The Water Resources Conservation and Development Fund, as provided in
1039     Section 73-23-2.
1040          (58) Funds donated or paid to a juvenile court by private sources, as provided in
1041     Subsection 78A-6-203(1)(c).
1042          (59) Fees for certificate of admission created under Section 78A-9-102.
1043          (60) Funds collected for adoption document access as provided in Sections 78B-6-141,
1044     78B-6-144, and 78B-6-144.5.
1045          (61) Revenue for golf user fees at the Wasatch Mountain State Park, Palisades State
1046     Park, Jordan River State Park, and Green River State Park, as provided under Section
1047     79-4-403.
1048          (62) Certain funds received by the Division of Parks and Recreation from the sale or
1049     disposal of buffalo, as provided under Section 79-4-1001.
1050          (63) Funds collected for indigent defense as provided in Title 77, Chapter 32, Part 8,

1051     Utah Indigent Defense Commission.
1052          Section 22. Section 63J-1-602.1 (Effective 09/30/18) is repealed and reenacted to read:
1053          63J-1-602.1 (Effective 09/30/18). List of nonlapsing appropriations from accounts
1054     and funds.
1055          Appropriations made from the following accounts or funds are nonlapsing:
1056          (1) The Utah Intracurricular Student Organization Support for Agricultural Education
1057     and Leadership Restricted Account created in Section 4-42-102.
1058          (2) The Native American Repatriation Restricted Account created in Section 9-9-407.
1059          (3) The Martin Luther King, Jr. Civil Rights Support Restricted Account created in
1060     Section 9-18-102.
1061          (4) The National Professional Men's Soccer Team Support of Building Communities
1062     Restricted Account created in Section 9-19-102.
1063          (5) Funds collected for directing and administering the C-PACE district created in
1064     Section 11-42a-302.
1065          (6) Award money under the State Asset Forfeiture Grant Program, as provided under
1066     Section 24-4-117.
1067          (7) Funds collected from the program fund for local health department expenses
1068     incurred in responding to a local health emergency under Section 26-1-38.
1069          (8) Funds collected from the emergency medical services grant program, as provided in
1070     Section 26-8a-207.
1071          (9) The Prostate Cancer Support Restricted Account created in Section 26-21a-303.
1072          (10) The Children with Cancer Support Restricted Account created in Section
1073     26-21a-304.
1074          (11) State funds for matching federal funds in the Children's Health Insurance Program
1075     as provided in Section 26-40-108.
1076          (12) The Children with Heart Disease Support Restricted Account created in Section
1077     26-58-102.
1078          (13) The Technology Development Restricted Account created in Section 31A-3-104.
1079          (14) The Criminal Background Check Restricted Account created in Section
1080     31A-3-105.
1081          (15) The Captive Insurance Restricted Account created in Section 31A-3-304, except

1082     to the extent that Section 31A-3-304 makes the money received under that section free revenue.
1083          (16) The Title Licensee Enforcement Restricted Account created in Section
1084     31A-23a-415.
1085          (17) The Health Insurance Actuarial Review Restricted Account created in Section
1086     31A-30-115.
1087          (18) The Insurance Fraud Investigation Restricted Account created in Section
1088     31A-31-108.
1089          (19) The Underage Drinking Prevention Media and Education Campaign Restricted
1090     Account created in Section 32B-2-306.
1091          (20) The Youth Development Organization Restricted Account created in Section
1092     35A-8-1903.
1093          (21) The Youth Character Organization Restricted Account created in Section
1094     35A-8-2003.
1095          (22) Money received by the Utah State Office of Rehabilitation for the sale of certain
1096     products or services, as provided in Section 35A-13-202.
1097          (23) The Oil and Gas Conservation Account created in Section 40-6-14.5.
1098          (24) The Electronic Payment Fee Restricted Account created by Section 41-1a-121 to
1099     the Motor Vehicle Division.
1100          (25) The Motor Vehicle Enforcement Division Temporary Permit Restricted Account
1101     created by Section 41-3-110 to the State Tax Commission.
1102          (26) The Utah Law Enforcement Memorial Support Restricted Account created in
1103     Section 53-1-120.
1104          (27) The State Disaster Recovery Restricted Account to the Division of Emergency
1105     Management, as provided in Section 53-2a-603.
1106          (28) The Department of Public Safety Restricted Account to the Department of Public
1107     Safety, as provided in Section 53-3-106.
1108          (29) The Utah Highway Patrol Aero Bureau Restricted Account created in Section
1109     53-8-303.
1110          (30) The DNA Specimen Restricted Account created in Section 53-10-407.
1111          (31) The Canine Body Armor Restricted Account created in Section 53-16-201.
1112          (32) A certain portion of money collected for administrative costs under the School

1113     Institutional Trust Lands Management Act, as provided under Section 53C-3-202.
1114          (33) The School Readiness Restricted Account created in Section 53F-9-402.
1115          (34) The Public Utility Regulatory Restricted Account created in Section 54-5-1.5,
1116     subject to Subsection 54-5-1.5(4)(d).
1117          (35) Certain fines collected by the Division of Occupational and Professional Licensing
1118     for violation of unlawful or unprofessional conduct that are used for education and enforcement
1119     purposes, as provided in Section 58-17b-505.
1120          (36) Certain fines collected by the Division of Occupational and Professional Licensing
1121     for use in education and enforcement of the Security Personnel Licensing Act, as provided in
1122     Section 58-63-103.
1123          (37) The Relative Value Study Restricted Account created in Section 59-9-105.
1124          (38) The Cigarette Tax Restricted Account created in Section 59-14-204.
1125          (39) Funds paid to the Division of Real Estate for the cost of a criminal background
1126     check for a mortgage loan license, as provided in Section 61-2c-202.
1127          (40) Funds paid to the Division of Real Estate for the cost of a criminal background
1128     check for principal broker, associate broker, and sales agent licenses, as provided in Section
1129     61-2f-204.
1130          (41) Certain funds donated to the Department of Human Services, as provided in
1131     Section 62A-1-111.
1132          (42) The National Professional Men's Basketball Team Support of Women and
1133     Children Issues Restricted Account created in Section 62A-1-202.
1134          (43) Certain funds donated to the Division of Child and Family Services, as provided
1135     in Section 62A-4a-110.
1136          (44) The Choose Life Adoption Support Restricted Account created in Section
1137     62A-4a-608.
1138          (45) Funds collected by the Office of Administrative Rules for publishing, as provided
1139     in Section 63G-3-402.
1140          (46) The Immigration Act Restricted Account created in Section 63G-12-103.
1141          (47) Money received by the military installation development authority, as provided in
1142     Section 63H-1-504.
1143          (48) The Computer Aided Dispatch Restricted Account created in Section 63H-7a-303.

1144          (49) The Unified Statewide 911 Emergency Service Account created in Section
1145     63H-7a-304.
1146          (50) The Utah Statewide Radio System Restricted Account created in Section
1147     63H-7a-403.
1148          (51) The Employability to Careers Program Restricted Account created in Section
1149     63J-4-703.
1150          (52) The Motion Picture Incentive Account created in Section 63N-8-103.
1151          (53) Certain money payable for expenses of the Pete Suazo Utah Athletic Commission,
1152     as provided under Section 63N-10-301.
1153          (54) Funds collected by the housing of state probationary inmates or state parole
1154     inmates, as provided in Subsection 64-13e-104(2).
1155          (55) Certain forestry and fire control funds utilized by the Division of Forestry, Fire,
1156     and State Lands, as provided in Section 65A-8-103.
1157          (56) Certain funds received by the Office of the State Engineer for well drilling fines or
1158     bonds, as provided in Section 73-3-25.
1159          (57) The Water Resources Conservation and Development Fund, as provided in
1160     Section 73-23-2.
1161          (58) Funds donated or paid to a juvenile court by private sources, as provided in
1162     Subsection 78A-6-203(1)(c).
1163          (59) Fees for certificate of admission created under Section 78A-9-102.
1164          (60) Funds collected for adoption document access as provided in Sections 78B-6-141,
1165     78B-6-144, and 78B-6-144.5.
1166          (61) Revenue for golf user fees at the Wasatch Mountain State Park, Palisades State
1167     Park, Jordan River State Park, and Green River State Park, as provided under Section
1168     79-4-403.
1169          (62) Certain funds received by the Division of Parks and Recreation from the sale or
1170     disposal of buffalo, as provided under Section 79-4-1001.
1171          (63) Funds collected for indigent defense as provided in Title 77, Chapter 32, Part 8,
1172     Utah Indigent Defense Commission.
1173          Section 23. Section 63J-1-602.2 is repealed and reenacted to read:
1174          63J-1-602.2. List of nonlapsing appropriations to programs.

1175          Appropriations made to the following programs are nonlapsing:
1176          (1) The Legislature and its committees.
1177          (2) The Percent-for-Art Program created in Section 9-6-404.
1178          (3) The LeRay McAllister Critical Land Conservation Program created in Section
1179     11-38-301.
1180          (4) The Division of Wildlife Resources for the appraisal and purchase of lands under
1181     the Pelican Management Act, as provided in Section 23-21a-6.
1182          (5) The primary care grant program created in Section 26-10b-102.
1183          (6) The Utah Health Care Workforce Financial Assistance Program created in Section
1184     26-46-102.
1185          (7) The Rural Physician Loan Repayment Program created in Section 26-46a-103.
1186          (8) The Opiate Overdose Outreach Pilot Program created in Section 26-55-107.
1187          (9) The General Assistance program administered by the Department of Workforce
1188     Services, as provided in Section 35A-3-401.
1189          (10) A new program or agency that is designated as nonlapsing under Section
1190     36-24-101.
1191          (11) The Utah National Guard, created in Title 39, Militia and Armories.
1192          (12) The State Tax Commission under Section 41-1a-1201 for the:
1193          (a) purchase and distribution of license plates and decals; and
1194          (b) administration and enforcement of motor vehicle registration requirements.
1195          (13) The Search and Rescue Financial Assistance Program, as provided in Section
1196     53-2a-1102.
1197          (14) The Motorcycle Rider Education Program, as provided in Section 53-3-905.
1198          (15) The State Board of Education, as provided in Section 53F-2-205.
1199          (16) The State Board of Regents for teacher preparation programs, as provided in
1200     Section 53B-6-104.
1201          (17) The Medical Education Program administered by the Medical Education Council,
1202     as provided in Section 53B-24-202.
1203          (18) The Division of Services for People with Disabilities, as provided in Section
1204     62A-5-102.
1205          (19) The Division of Fleet Operations for the purpose of upgrading underground

1206     storage tanks under Section 63A-9-401.
1207          (20) The Utah Seismic Safety Commission, as provided in Section 63C-6-104.
1208          (21) The Office of Administrative Rules for publishing, as provided in Section
1209     63G-3-402.
1210          (22) The Utah Science Technology and Research Initiative created in Section
1211     63M-2-301.
1212          (23) The Governor's Office of Economic Development to fund the Enterprise Zone
1213     Act, as provided in Title 63N, Chapter 2, Part 2, Enterprise Zone Act.
1214          (24) The Department of Human Resource Management user training program, as
1215     provided in Section 67-19-6.
1216          (25) The University of Utah Poison Control Center program, as provided in Section
1217     69-2-5.5.
1218          (26) The Traffic Noise Abatement Program created in Section 72-6-112.
1219          (27) The Judicial Council for compensation for special prosecutors, as provided in
1220     Section 77-10a-19.
1221          (28) A state rehabilitative employment program, as provided in Section 78A-6-210.
1222          (29) The Utah Geological Survey, as provided in Section 79-3-401.
1223          (30) The Bonneville Shoreline Trail Program created under Section 79-5-503.
1224          (31) Adoption document access as provided in Sections 78B-6-141, 78B-6-144, and
1225     78B-6-144.5.
1226          (32) Indigent defense as provided in Title 77, Chapter 32, Part 8, Utah Indigent
1227     Defense Commission.
1228          Section 24. Section 63J-2-102 is amended to read:
1229          63J-2-102. Definitions.
1230          As used in this chapter:
1231          (1) (a) "Agency" means each department, commission, board, council, agency,
1232     institution, officer, corporation, fund, division, office, committee, authority, laboratory, library,
1233     unit, bureau, panel, or other administrative unit of the state.
1234          (b) "Agency" does not include the legislative branch, the board of regents, the Utah
1235     Higher Education Assistance Authority, the board of trustees of each higher education
1236     institution, each higher education institution and its associated branches, centers, divisions,

1237     institutes, foundations, hospitals, colleges, schools, or departments, a public education entity,
1238     or an independent agency.
1239          (2) [(a)] "Dedicated credits [revenues]" means [revenues from collections by an agency
1240     that are deposited directly into an account for expenditure on a separate line item and program]
1241     the same as that term is defined in Section 63J-1-102.
1242          [(b) "Dedicated credits revenues" does not mean:]
1243          [(i) federal revenues and the related pass through or the related state match paid by one
1244     agency to another;]
1245          [(ii) revenues that are not deposited in governmental funds; or]
1246          [(iii) revenues from any contracts.]
1247          (3) "Fees" means revenue collected by an agency for performing a service or providing
1248     a function that the agency deposits or accounts for as dedicated credits [or fixed collections].
1249          [(4) (a) "Fixed collections revenues" means revenue from collections:]
1250          [(i) fixed by law or by the appropriation act at a specific amount; and]
1251          [(ii) required by law to be deposited into a separate line item and program.]
1252          [(b) "Fixed collections revenues" does not mean:]
1253          [(i) federal revenues and the related pass through or the related state match paid by one
1254     agency to another;]
1255          [(ii) revenues that are not deposited in governmental funds;]
1256          [(iii) revenues from any contracts; and]
1257          [(iv) revenues received by the Attorney General's Office from billings for professional
1258     services.]
1259          [(5)] (4) (a) "Governmental fund" means funds used to account for the acquisition, use,
1260     and balances of expendable financial resources and related liabilities using a measurement
1261     focus that emphasizes the flow of financial resources.
1262          (b) "Governmental fund" does not include internal service funds, enterprise funds,
1263     capital projects funds, debt service funds, or trust and agency funds as established in Section
1264     51-5-4.
1265          [(6)] (5) "Independent agency" means the Utah State Retirement Office and the Utah
1266     Housing Corporation.
1267          [(7)] (6) "Program" means the [function or service provided by an agency for which the

1268     agency collects fees] same as that term is defined in Section 63J-1-102.
1269          [(8)] (7) "Revenue types" means the categories established by the Division of Finance
1270     under the authority of this chapter that classify revenue according to the purpose for which it is
1271     collected.
1272          Section 25. Section 63J-2-201 is amended to read:
1273          63J-2-201. Accounting for fee revenues.
1274          (1) The Division of Finance shall:
1275          (a) establish revenue types;
1276          (b) develop a computerized master file of revenue types containing, for each revenue
1277     type:
1278          (i) the definition of each revenue type;
1279          (ii) if available, a historical record of the amount collected for the revenue type for
1280     each of the five years;
1281          (iii) the agency that collected the revenue;
1282          (iv) the program, organization, and fund into which the revenue was originally
1283     recorded each year;
1284          (v) a general description of the function where the largest portion of the revenue was
1285     spent each year;
1286          (vi) the specific legal authority that authorizes the agency to collect the revenue;
1287          (vii) the rates charged to the individuals or entities that pay the revenue;
1288          (viii) the general methodology used to determine the rate charged to individuals or
1289     entities that pay the revenue;
1290          (ix) for dedicated credits [revenues and fixed collections revenues], the revenue
1291     estimate used by the agency to prepare their budget;
1292          (x) the amount appropriated as dedicated credits [revenues and fixed collections
1293     revenues] in the annual appropriation act; and
1294          (xi) for revenues other than dedicated credits [revenues and fixed collections
1295     revenues], an estimate of the amount of revenue, if available or reasonably calculable; and
1296          (c) make the computerized file available to the Budget Office and the Office of
1297     Legislative Fiscal Analyst upon request.
1298          (2) Each agency shall provide the Division of Finance with the information required by

1299     this section.
1300          Section 26. Section 63J-2-202 is amended to read:
1301          63J-2-202. Disposition of revenues.
1302          [(1) (a) Each agency shall include in its annual budget request estimates of dedicated
1303     credits revenues and fixed collections revenues that are identified by, collected for, or set by the
1304     agency.]
1305          [(b)] (1) If the Legislature or the Division of Finance establishes a new revenue type by
1306     law, the agency shall include that new revenue type in its budget request for the next fiscal
1307     year.
1308          [(c) (i)] (2) (a) Except as provided in Subsection [(1)(c)(ii)] (2)(b), if any agency fails
1309     to include the estimates of a revenue type in its annual budget request, the Division of Finance
1310     shall deposit the money collected in that revenue type into the General Fund or other
1311     appropriate fund as free or restricted revenue.
1312          [(ii)] (b) The Division of Finance may not deposit the money collected from a revenue
1313     type not included in an agency's annual budget request into the General Fund or other
1314     appropriate fund if the agency did not include the estimates of the revenue type in its annual
1315     budget request because the Legislature had not yet established or authorized the new revenue
1316     type by law.
1317          [(2) (a) (i) (A) Except as provided in Subsection (2)(a)(i)(B) or (2)(b), each agency that
1318     receives dedicated credits and fixed collections revenues greater than the amount appropriated
1319     to them by the Legislature in the annual appropriations act may expend the excess up to 25% of
1320     the amount appropriated if the expenditure is authorized by an amended work program
1321     approved as provided in Section 63J-1-209.]
1322          [(B) Except for line items covering tuition and federal vocational funds at institutions
1323     of higher learning, any expenditure of dedicated credits in excess of amounts appropriated by
1324     the Legislature may not be used to permanently increase personnel within the agency unless
1325     approved by the Legislature.]
1326          [(ii) The Division of Finance shall deposit the balance of that excess into the General
1327     Fund or other appropriate fund as free or restricted revenue.]
1328          [(b) Notwithstanding the requirements of Subsection (2)(a), when an agency's
1329     dedicated credits and fixed collections revenues represent over 90% of the budget of the

1330     program for which they are collected, the agency may expend 100% of the excess of the
1331     amount appropriated if the expenditure is authorized by an amended work program approved as
1332     provided in Section 63J-1-209.]
1333          [(3) Each agency that receives dedicated credits or fixed collections shall report, to the
1334     Division of Finance, any balances remaining in those funds at the conclusion of each fiscal
1335     year.]
1336          Section 27. Section 63J-4-301 is amended to read:
1337          63J-4-301. Duties of the executive director and office.
1338          (1) The executive director and the office shall:
1339          (a) comply with the procedures and requirements of Title 63J, Chapter 1, Budgetary
1340     Procedures Act;
1341          (b) under the direct supervision of the governor, assist the governor in the preparation
1342     of the governor's budget recommendations;
1343          (c) [advise the governor with regard to approval or revision of agency work programs]
1344     review agency budget execution plans as specified in Section 63J-1-209;
1345          (d) establish benchmarking practices for measuring operational costs, quality of
1346     service, and effectiveness across all state agencies and programs;
1347          (e) assist agencies with the development of an operational plan that uses continuous
1348     improvement tools and operational metrics to increase statewide capacity and improve
1349     interagency integration;
1350          (f) review and assess agency budget requests and expenditures using a clear set of goals
1351     and measures;
1352          (g) develop and maintain enterprise portfolio and electronic information systems to
1353     select and oversee the execution of projects, ensure a return on investment, and trace and report
1354     performance metrics; and
1355          (h) perform other duties and responsibilities as assigned by the governor.
1356          (2) (a) The executive director of the Governor's Office of Management and Budget or
1357     the executive director's designee is the Federal Assistance Management Officer.
1358          (b) In acting as the Federal Assistance Management Officer, the executive director or
1359     designee shall:
1360          (i) study the administration and effect of federal assistance programs in the state and

1361     advise the governor and the Legislature, through the Office of Legislative Fiscal Analyst and
1362     the Executive Appropriations Committee, of alternative recommended methods and procedures
1363     for the administration of these programs;
1364          (ii) assist in the coordination of federal assistance programs that involve or are
1365     administered by more than one state agency; and
1366          (iii) analyze and advise on applications for new federal assistance programs submitted
1367     to the governor for approval as required by Chapter 5, Federal Funds Procedures Act.
1368          Section 28. Section 63N-8-103 is amended to read:
1369          63N-8-103. Motion Picture Incentive Account created -- Cash rebate incentives --
1370     Refundable tax credit incentives.
1371          (1) (a) There is created within the General Fund a restricted account known as the
1372     Motion Picture Incentive Account, which the office shall use to provide cash rebate incentives
1373     for state-approved productions by a motion picture company.
1374          (b) All interest generated from investment of money in the restricted account shall be
1375     deposited in the restricted account.
1376          (c) The restricted account shall consist of an annual appropriation by the Legislature.
1377          (d) The office shall:
1378          (i) with the advice of the board, administer the restricted account; and
1379          (ii) make payments from the restricted account as required under this section.
1380          (e) The cost of administering the restricted account shall be paid from money in the
1381     restricted account.
1382          (2) (a) A motion picture company or digital media company seeking disbursement of
1383     an incentive allowed under an agreement with the office shall follow the procedures and
1384     requirements of this Subsection (2).
1385          (b) The motion picture company or digital media company shall provide the office with
1386     a report identifying and documenting the dollars left in the state and new state revenues
1387     generated by the motion picture company or digital media company for its state-approved
1388     production, including any related tax returns by the motion picture company, payroll company,
1389     digital media company, or loan-out corporation under Subsection (2)(d).
1390          (c) For a motion picture company, an independent certified public accountant shall:
1391          (i) review the report submitted by the motion picture company; and

1392          (ii) attest to the accuracy and validity of the report, including the amount of dollars left
1393     in the state.
1394          (d) The motion picture company, digital media company, payroll company, or loan-out
1395     corporation shall provide the office with a document that expressly directs and authorizes the
1396     State Tax Commission to disclose the entity's tax returns and other information concerning the
1397     entity that would otherwise be subject to confidentiality under Section 59-1-403 or Section
1398     6103, Internal Revenue Code, to the office.
1399          (e) The office shall submit the document described in Subsection (2)(d) to the State
1400     Tax Commission.
1401          (f) Upon receipt of the document described in Subsection (2)(d), the State Tax
1402     Commission shall provide the office with the information requested by the office that the
1403     motion picture company, digital media company, payroll company, or loan-out corporation
1404     directed or authorized the State Tax Commission to provide to the office in the document
1405     described in Subsection (2)(d).
1406          (g) Subject to Subsection (3), for a motion picture company the office shall:
1407          (i) review the report from the motion picture company described in Subsection (2)(b)
1408     and verify that it was reviewed by an independent certified public accountant as described in
1409     Subsection (2)(c); and
1410          (ii) based upon the certified public accountant's attestation under Subsection (2)(c),
1411     determine the amount of the incentive that the motion picture company is entitled to under its
1412     agreement with the office.
1413          (h) Subject to Subsection (3), for a digital media company, the office shall:
1414          (i) ensure the digital media project results in new state revenue; and
1415          (ii) based upon review of new state revenue, determine the amount of the incentive that
1416     a digital media company is entitled to under its agreement with the office.
1417          (i) Subject to Subsection (3), if the incentive is in the form of a cash rebate, the office
1418     shall pay the incentive from the restricted account to the motion picture company,
1419     notwithstanding Subsections 51-5-3(23)(b) and [63J-1-104(4)(c)] 63J-1-105(6).
1420          (j) If the incentive is in the form of a refundable tax credit under Section 59-7-614.5 or
1421     59-10-1108, the office shall:
1422          (i) issue a tax credit certificate to the motion picture company or digital media

1423     company; and
1424          (ii) provide a duplicate copy of the tax credit certificate to the State Tax Commission.
1425          (k) A motion picture company or digital media company may not claim a motion
1426     picture tax credit under Section 59-7-614.5 or 59-10-1108 unless the motion picture company
1427     or digital media company has received a tax credit certificate for the claim issued by the office
1428     under Subsection (2)(j)(i).
1429          (l) A motion picture company or digital media company may claim a motion picture
1430     tax credit on its tax return for the amount listed on the tax credit certificate issued by the office.
1431          (m) A motion picture company or digital media company that claims a tax credit under
1432     Subsection (2)(l) shall retain the tax credit certificate and all supporting documentation in
1433     accordance with Subsection 63N-8-104(6).
1434          (3) (a) Subject to Subsection (3)(b), the office may issue $6,793,700 in tax credit
1435     certificates under this part in a fiscal year.
1436          (b) If the office does not issue tax credit certificates in a fiscal year totaling the amount
1437     authorized under Subsection (3)(a), it may carry over that amount for issuance in subsequent
1438     fiscal years.
1439          Section 29. Section 73-18-25 is amended to read:
1440          73-18-25. Fees to cover the costs of electronic payments.
1441          (1) As used in this section:
1442          (a) "Electronic payment" has the same meaning as defined in Section 41-1a-1221.
1443          (b) "Electronic payment fee" has the same meaning as defined in Section 41-1a-1221.
1444          (2) (a) The Motor Vehicle Division may collect an electronic payment fee on all
1445     registrations and renewals of registration under Section 73-18-7.
1446          (b) The fee described under Subsection (2)(a) shall be imposed regardless of the
1447     method of payment for a particular transaction.
1448          (3) The Motor Vehicle Division shall establish the fee according to the procedures and
1449     requirements of Section 63J-1-504.
1450          (4) A fee imposed under this section:
1451          (a) shall be deposited in the Electronic Payment Fee Restricted Account created by
1452     Section 41-1a-121;
1453          (b) is not subject to Subsection [63J-2-202(2)] 63J-1-105(3) or (4); and

1454          (c) need not be separately identified from the fees imposed on registrations and
1455     renewals of registration under Section 73-18-7.
1456          Section 30. Repealer.
1457          This bill repeals:
1458          Section 63J-1-602.3, List of nonlapsing funds and accounts -- Title 46 through Title
1459     60.
1460          Section 63J-1-602.4, List of nonlapsing funds and accounts -- Title 61 through Title
1461     63N.
1462          Section 63J-1-602.5, List of nonlapsing funds and accounts -- Title 64 and
1463     thereafter.
1464          Section 31. Effective date.
1465          This bill takes effect on Ĥ→ [
May 8] July 1 ←Ĥ , 2018, except that the amendments
1465a     to Section
1466     63J-1-602.1 (Effective 09/30/18) take effect on September 30, 2018.






Legislative Review Note
Office of Legislative Research and General Counsel