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7 LONG TITLE
8 General Description:
9 This bill modifies provisions of the State Settlement Agreements Act.
10 Highlighted Provisions:
11 This bill:
12 ▸ modifies provisions that require the governor or the Legislature to pre-approve
13 various proposed settlements.
14 Money Appropriated in this Bill:
15 None
16 Other Special Clauses:
17 None
18 Utah Code Sections Affected:
19 AMENDS:
20 63G-10-103, as renumbered and amended by Laws of Utah 2008, Chapter 382
21 63G-10-201, as renumbered and amended by Laws of Utah 2008, Chapter 382
22 63G-10-202, as renumbered and amended by Laws of Utah 2008, Chapter 382
23 63G-10-301, as renumbered and amended by Laws of Utah 2008, Chapter 382
24 63G-10-302, as renumbered and amended by Laws of Utah 2008, Chapter 382
25 63G-10-303, as renumbered and amended by Laws of Utah 2008, Chapter 382
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27 Be it enacted by the Legislature of the state of Utah:
28 Section 1. Section 63G-10-103 is amended to read:
29 63G-10-103. Notice of voidableness of settlement agreements.
30 The following are voidable by the governor or the Legislature as provided in this
31 chapter:
32 [
33 (a) may cost government entities, or may reduce financial obligations to government
34 entities, more than $100,000 [
35 (b) is executed by an agency in violation of this chapter[
36 (2) an action settlement agreement that is executed by an agency in violation of this
37 chapter[
38 Section 2. Section 63G-10-201 is amended to read:
39 63G-10-201. Governor to approve financial settlement agreements.
40 (1) Before legally binding the state by executing a financial settlement agreement [
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42 proposed financial settlement agreement to the governor for the governor's approval or
43 rejection[
44 (a) may cost government entities more than $100,000 to implement; or
45 (b) may reduce financial obligations to government entities in an amount more than
46 $100,000.
47 (2) The governor shall approve or reject each financial settlement agreement.
48 (3) (a) If the governor approves the financial settlement agreement, the agency may
49 execute the agreement.
50 (b) If the governor rejects the financial settlement agreement, the agency may not
51 execute the agreement.
52 (4) If an agency executes a financial settlement agreement without obtaining the
53 governor's approval under this section, the governor may issue an executive order declaring the
54 settlement agreement void.
55 Section 3. Section 63G-10-202 is amended to read:
56 63G-10-202. Legislative review and approval of financial settlement agreements.
57 (1) (a) Before legally binding the state by executing a financial settlement agreement
58 that [
59 financial obligations to government entities by more than $500,000, an agency shall:
60 (i) submit the proposed financial settlement agreement to the governor for the
61 governor's approval or rejection as required by Section 63G-10-201; and
62 (ii) if the governor approves the financial settlement agreement, submit the financial
63 settlement agreement to the Legislative Management Committee for its review and
64 recommendations.
65 (b) The Legislative Management Committee shall review the financial settlement
66 agreement and may:
67 (i) recommend that the agency execute the financial settlement agreement;
68 (ii) recommend that the agency reject the financial settlement agreement; or
69 (iii) recommend to the governor that the governor call a special session of the
70 Legislature to review and approve or reject the financial settlement agreement.
71 (2) (a) Before legally binding the state by executing a financial settlement agreement
72 that [
73 financial obligations to government entities by more than $1,000,000, an agency shall:
74 (i) submit the proposed financial settlement agreement to the governor for the
75 governor's approval or rejection as required by Section 63G-10-201; and
76 (ii) if the governor approves the financial settlement agreement, submit the financial
77 settlement agreement to the Legislature for its approval in an annual general session or a
78 special session.
79 (b) (i) If the Legislature approves the financial settlement agreement, the agency may
80 execute the agreement.
81 (ii) If the Legislature rejects the financial settlement agreement, the agency may not
82 execute the agreement.
83 (c) If an agency executes a financial settlement agreement without obtaining the
84 Legislature's approval under this Subsection (2):
85 (i) the governor may issue an executive order declaring the settlement agreement void;
86 or
87 (ii) the Legislature may pass a joint resolution declaring the settlement agreement void.
88 Section 4. Section 63G-10-301 is amended to read:
89 63G-10-301. Cost evaluation of action settlement agreements.
90 (1) Before legally binding the state to an action settlement agreement that [
91 cost the state a total of $100,000 or more to implement, or may reduce financial obligations to
92 the state by a total of $100,000 or more, an agency shall estimate the cost of implementing the
93 action settlement agreement and submit that cost estimate to the governor and the Legislative
94 Management Committee.
95 (2) The Legislative Management Committee may:
96 (a) direct its staff to make an independent cost estimate of the cost of implementing the
97 action settlement agreement; and
98 (b) affirmatively adopt a cost estimate as the benchmark for determining which
99 authorizations established by this part are necessary.
100 Section 5. Section 63G-10-302 is amended to read:
101 63G-10-302. Governor to approve action settlement agreements.
102 (1) Before legally binding the state by executing an action settlement agreement that
103 [
104 financial obligations to government entities by a total of $100,000 or more, an agency shall
105 submit the proposed settlement agreement to the governor for the governor's approval or
106 rejection.
107 (2) The governor shall approve or reject each action settlement agreement.
108 (3) (a) If the governor approves the action settlement agreement, the agency may
109 execute the agreement.
110 (b) If the governor rejects the action settlement agreement, the agency may not execute
111 the agreement.
112 (4) If an agency executes an action settlement agreement without obtaining the
113 governor's approval under this section, the governor may issue an executive order declaring the
114 settlement agreement void.
115 Section 6. Section 63G-10-303 is amended to read:
116 63G-10-303. Legislative review and approval of action settlement agreements.
117 (1) (a) Before legally binding the state by executing an action settlement agreement that
118 [
119 financial obligations to government entities by more than $500,000, an agency shall:
120 (i) submit the proposed action settlement agreement to the governor for the governor's
121 approval or rejection as required by Section 63G-10-302; and
122 (ii) if the governor approves the action settlement agreement, submit the action
123 settlement agreement to the Legislative Management Committee for its review and
124 recommendations.
125 (b) The Legislative Management Committee shall review the action settlement
126 agreement and may:
127 (i) recommend that the agency execute the settlement agreement;
128 (ii) recommend that the agency reject the settlement agreement; or
129 (iii) recommend to the governor that the governor call a special session of the
130 Legislature to review and approve or reject the settlement agreement.
131 (2) (a) Before legally binding the state by executing an action settlement agreement that
132 [
133 financial obligations to government entities by more than $1,000,000, an agency shall:
134 (i) submit the proposed action settlement agreement to the governor for the governor's
135 approval or rejection as required by Section 63G-10-302; and
136 (ii) if the governor approves the action settlement agreement, submit the action
137 settlement agreement to the Legislature for its approval in an annual general session or a
138 special session.
139 (b) (i) If the Legislature approves the action settlement agreement, the agency may
140 execute the agreement.
141 (ii) If the Legislature rejects the action settlement agreement, the agency may not
142 execute the agreement.
143 (c) If an agency executes an action settlement agreement without obtaining the
144 Legislature's approval under this Subsection (2):
145 (i) the governor may issue an executive order declaring the action settlement agreement
146 void; or
147 (ii) the Legislature may pass a joint resolution declaring the action settlement
148 agreement void.
Legislative Review Note
Office of Legislative Research and General Counsel