Senator Deidre M. Henderson proposes the following substitute bill:


1     
GOVERNMENTAL NONPROFIT CORPORATION ACT

2     
AMENDMENTS

3     
2019 GENERAL SESSION

4     
STATE OF UTAH

5     
Chief Sponsor: Deidre M. Henderson

6     
House Sponsor: Craig Hall

7     

8     LONG TITLE
9     General Description:
10          This bill amends definitions and provides for certain training relating to governmental
11     nonprofit corporations.
12     Highlighted Provisions:
13          This bill:
14          ▸     amends an informational requirement for the local government and limited purpose
15     entity registry;
16          ▸     requires the state auditor to:
17               •     develop a training or other informational resource regarding best practices for
18     financial controls and board governance; and
19               •     distribute the training or other informational resource to certain state and local
20     entities and governmental nonprofit corporations; and
21          ▸     makes technical and conforming changes.
22     Money Appropriated in this Bill:
23          None
24     Other Special Clauses:
25          None

26     Utah Code Sections Affected:
27     AMENDS:
28          67-1a-15, as enacted by Laws of Utah 2018, Chapter 256
29          67-3-1, as last amended by Laws of Utah 2018, Chapters 200 and 256
30     

31     Be it enacted by the Legislature of the state of Utah:
32          Section 1. Section 67-1a-15 is amended to read:
33          67-1a-15. Local government and limited purpose entity registry.
34          (1) As used in this section:
35          (a) "Entity" means a limited purpose entity or a local government entity.
36          (b) (i) "Limited purpose entity" means a legal entity that:
37          (A) performs a single governmental function or limited governmental functions; and
38          (B) is not a state executive branch agency, a state legislative office, or within the
39     judicial branch.
40          (ii) "Limited purpose entity" includes:
41          (A) area agencies, area agencies on aging, and area agencies on high risk adults, as
42     those terms are defined in Section 62A-3-101;
43          (B) charter schools created under Title 53G, Chapter 5, Charter Schools;
44          (C) community reinvestment agencies, as that term is defined in Section 17C-1-102;
45          (D) conservation districts, as that term is defined in Section 17D-3-102;
46          (E) governmental nonprofit corporations, as that term is defined in Section 11-13a-102;
47          (F) housing authorities, as that term is defined in Section 35A-8-401;
48          (G) independent entities and independent state agencies, as those terms are defined in
49     Section 63E-1-102;
50          (H) interlocal entities, as that term is defined in Section 11-13-103;
51          (I) local building authorities, as that term is defined in Section 17D-2-102;
52          (J) local districts, as that term is defined in Section 17B-1-102;
53          (K) local health departments, as that term is defined in Section 26A-1-102;
54          (L) local mental health authorities, as that term is defined in Section 62A-15-102;
55          (M) nonprofit corporations that receive an amount of money requiring an accounting
56     report under Section 51-2a-201.5;

57          (N) school districts under Title 53G, Chapter 3, School District Creation and Change;
58          (O) special service districts, as that term is defined in Section 17D-1-102; and
59          (P) substance abuse authorities, as that term is defined in Section 62A-15-102.
60          (c) "Local government and limited purpose entity registry" or "registry" means the
61     registry of local government entities and limited purpose entities created under this section.
62          (d) "Local government entity" means:
63          (i) a county, as that term is defined in Section 17-50-101; and
64          (ii) a municipality, as that term is defined in Section 10-1-104.
65          (e) "Notice of failure to register" means the notice the lieutenant governor sends, in
66     accordance with Subsection (7)(a), to an entity that does not register.
67          (f) "Notice of failure to renew" means the notice the lieutenant governor sends to a
68     registered entity, in accordance with Subsection (7)(b).
69          (g) "Notice of noncompliance" means the notice the lieutenant governor sends to a
70     registered entity, in accordance with Subsection (6)(c).
71          (h) "Notice of non-registration" means the notice the lieutenant governor sends to an
72     entity and the state auditor, in accordance with Subsection (9).
73          (i) "Notice of registration or renewal" means the notice the lieutenant governor sends,
74     in accordance with Subsection (6)(b)(i).
75          (j) "Registered entity" means an entity with a valid registration as described in
76     Subsection (8).
77          (2) The lieutenant governor shall:
78          (a) create a registry of each local government entity and limited purpose entity within
79     the state that:
80          (i) contains the information described in Subsection (4); and
81          (ii) is accessible on the lieutenant governor's website or otherwise publicly available;
82     and
83          (b) establish fees for registration and renewal, in accordance with Section 63J-1-504,
84     based on and to directly offset the cost of creating, administering, and maintaining the registry.
85          (3) Each local government entity and limited purpose entity shall:
86          (a) on or before July 1, 2019, register with the lieutenant governor as described in
87     Subsection (4);

88          (b) on or before one year after the day on which the lieutenant governor issues the
89     notice of registration or renewal, annually renew the entity's registration in accordance with
90     Subsection (5); and
91          (c) within 30 days after the day on which any of the information described in
92     Subsection (4) changes, send notice of the changes to the lieutenant governor.
93          (4) Each entity shall include the following information in the entity's registration
94     submission:
95          (a) the resolution or other legal or formal document creating the entity or, if the
96     resolution or other legal or formal document creating the entity cannot be located, conclusive
97     proof of the entity's lawful creation;
98          (b) if the entity has geographic boundaries, a map or plat establishing the geographic
99     boundaries of the entity, or if it is impossible or unreasonably expensive to create a map or plat,
100     a metes and bounds description, or another legal description that identifies the boundaries of
101     the entity, conclusive proof of the entity's geographic boundaries;
102          (c) the entity's name;
103          (d) the entity's type of local government entity or limited purpose entity;
104          (e) the entity's governmental function;
105          (f) the entity's website, physical address, and phone number, including the name and
106     contact information of an individual whom the entity designates as the primary contact for the
107     entity;
108          (g) names of the members of the entity's governing board or commission, managing
109     officers, or other similar managers and the method by which the members or officers are
110     appointed, elected, or otherwise designated;
111          (h) the entity's sources of revenue; and
112          (i) if the entity has created an assessment area, as that term is defined in Section
113     11-42-102, information regarding the creation, purpose, and boundaries of the assessment area.
114          (5) Each entity shall include the following information in the entity's renewal
115     submission:
116          (a) identify and update any incorrect or outdated information the entity previously
117     submitted during registration under Subsection (4); or
118          (b) certify that the information the entity previously submitted during registration under

119     Subsection (4) is correct without change.
120          (6) Within 30 days of receiving an entity's registration or renewal submission, the
121     lieutenant governor shall:
122          (a) review the submission to determine compliance with Subsection (4) or (5);
123          (b) if the lieutenant governor determines that the entity's submission complies with
124     Subsection (4) or (5):
125          (i) send a notice of registration or renewal that includes the information that the entity
126     submitted under Subsection (4) or (5) to:
127          (A) the registering or renewing entity;
128          (B) each county in which the entity operates, either in whole or in part, or where the
129     entity's geographic boundaries overlap or are contained within the boundaries of the county;
130          (C) the Division of Archives and Records Service; and
131          (D) the Office of the Utah State Auditor; and
132          (ii) publish the information from the submission on the registry; and
133          (c) if the lieutenant governor determines that the entity's submission does not comply
134     with Subsection (4) or (5) or is otherwise inaccurate or deficient, send a notice of
135     noncompliance to the registering or renewing entity that:
136          (i) identifies each deficiency in the entity's submission with the corresponding statutory
137     requirement;
138          (ii) establishes a deadline to cure the entity's noncompliance that is the first business
139     day that is at least 30 calendar days after the day on which the lieutenant governor sends the
140     notice of noncompliance; and
141          (iii) states that failure to comply by the deadline the lieutenant governor establishes
142     under Subsection (6)(c)(ii) will result in the lieutenant governor sending a notice of
143     non-registration to the Office of the Utah State Auditor, in accordance with Subsection (9).
144          (7) (a) If the lieutenant governor identifies an entity that does not make a registration
145     submission in accordance with Subsection (4) by the deadline described in Subsection (3), the
146     lieutenant governor shall send a notice of failure to register to the registered entity that:
147          (i) identifies the statutorily required registration deadline described in Subsection (3)
148     that the entity did not meet;
149          (ii) establishes a deadline to cure the entity's failure to register that is the first business

150     day that is at least 10 calendar days after the day on which the lieutenant governor sends the
151     notice of failure to register; and
152          (iii) states that failure to comply by the deadline the lieutenant governor establishes
153     under Subsection (7)(a)(ii) will result in the lieutenant governor sending a notice of
154     non-registration to the Office of the Utah State Auditor, in accordance with Subsection (9).
155          (b) If a registered entity does not make a renewal submission in accordance with
156     Subsection (5) by the deadline described in Subsection (3), the lieutenant governor shall send a
157     notice of failure to renew to the registered entity that:
158          (i) identifies the renewal deadline described in Subsection (3) that the entity did not
159     meet;
160          (ii) establishes a deadline to cure the entity's failure to renew that is the first business
161     day that is at least 30 calendar days after the day on which the lieutenant governor sends the
162     notice of failure to renew; and
163          (iii) states that failure to comply by the deadline the lieutenant governor establishes
164     under Subsection (7)(b)(ii) will result in the lieutenant governor sending a notice of
165     non-registration to the Office of the Utah State Auditor, in accordance with Subsection (9).
166          (8) An entity's registration is valid:
167          (a) if the entity makes a registration or renewal submission in accordance with the
168     deadlines described in Subsection (3);
169          (b) during the period the lieutenant governor establishes in the notice of
170     noncompliance or notice of failure to renew during which the entity may cure the identified
171     registration deficiencies; and
172          (c) for one year beginning on the day the lieutenant governor issues the notice of
173     registration or renewal.
174          (9) (a) The lieutenant governor shall send a notice of non-registration to the Office of
175     the Utah State Auditor if an entity fails to:
176          (i) cure the entity's noncompliance by the deadline the lieutenant governor establishes
177     in the notice of noncompliance;
178          (ii) register by the deadline the lieutenant governor establishes in the notice of failure
179     to register; or
180          (iii) cure the entity's failure to renew by the deadline the lieutenant governor establishes

181     in the notice of failure to renew.
182          (b) The lieutenant governor shall ensure that the notice of non-registration:
183          (i) includes a copy of the notice of noncompliance, the notice of failure to register, or
184     the notice of failure to renew; and
185          (ii) requests that the state auditor withhold state allocated funds or the disbursement of
186     property taxes and prohibit the entity from accessing money held by the state or money held in
187     an account of a financial institution, in accordance with Subsections 67-3-1(7)(i) and
188     67-3-1(10).
189          (10) The lieutenant governor may extend a deadline under this section if an entity
190     notifies the lieutenant governor, before the deadline to be extended, of the existence of an
191     extenuating circumstance that is outside the control of the entity.
192          Section 2. Section 67-3-1 is amended to read:
193          67-3-1. Functions and duties.
194          (1) (a) The state auditor is the auditor of public accounts and is independent of any
195     executive or administrative officers of the state.
196          (b) The state auditor is not limited in the selection of personnel or in the determination
197     of the reasonable and necessary expenses of the state auditor's office.
198          (2) The state auditor shall examine and certify annually in respect to each fiscal year,
199     financial statements showing:
200          (a) the condition of the state's finances;
201          (b) the revenues received or accrued;
202          (c) expenditures paid or accrued;
203          (d) the amount of unexpended or unencumbered balances of the appropriations to the
204     agencies, departments, divisions, commissions, and institutions; and
205          (e) the cash balances of the funds in the custody of the state treasurer.
206          (3) (a) The state auditor shall:
207          (i) audit each permanent fund, each special fund, the General Fund, and the accounts of
208     any department of state government or any independent agency or public corporation as the law
209     requires, as the auditor determines is necessary, or upon request of the governor or the
210     Legislature;
211          (ii) perform the audits in accordance with generally accepted auditing standards and

212     other auditing procedures as promulgated by recognized authoritative bodies;
213          (iii) as the auditor determines is necessary, conduct the audits to determine:
214          (A) honesty and integrity in fiscal affairs;
215          (B) accuracy and reliability of financial statements;
216          (C) effectiveness and adequacy of financial controls; and
217          (D) compliance with the law.
218          (b) If any state entity receives federal funding, the state auditor shall ensure that the
219     audit is performed in accordance with federal audit requirements.
220          (c) (i) The costs of the federal compliance portion of the audit may be paid from an
221     appropriation to the state auditor from the General Fund.
222          (ii) If an appropriation is not provided, or if the federal government does not
223     specifically provide for payment of audit costs, the costs of the federal compliance portions of
224     the audit shall be allocated on the basis of the percentage that each state entity's federal funding
225     bears to the total federal funds received by the state.
226          (iii) The allocation shall be adjusted to reflect any reduced audit time required to audit
227     funds passed through the state to local governments and to reflect any reduction in audit time
228     obtained through the use of internal auditors working under the direction of the state auditor.
229          (4) (a) Except as provided in Subsection (4)(b), the state auditor shall, in addition to
230     financial audits, and as the auditor determines is necessary, conduct performance and special
231     purpose audits, examinations, and reviews of any entity that receives public funds, including a
232     determination of any or all of the following:
233          (i) the honesty and integrity of all its fiscal affairs;
234          (ii) whether or not its administrators have faithfully complied with legislative intent;
235          (iii) whether or not its operations have been conducted in an efficient, effective, and
236     cost-efficient manner;
237          (iv) whether or not its programs have been effective in accomplishing the intended
238     objectives; and
239          (v) whether or not its management, control, and information systems are adequate,
240     effective, and secure.
241          (b) The auditor may not conduct performance and special purpose audits,
242     examinations, and reviews of any entity that receives public funds if the entity:

243          (i) has an elected auditor; and
244          (ii) has, within the entity's last budget year, had its financial statements or performance
245     formally reviewed by another outside auditor.
246          (5) The state auditor shall administer any oath or affirmation necessary to the
247     performance of the duties of the auditor's office, and may subpoena witnesses and documents,
248     whether electronic or otherwise, and examine into any matter that the auditor considers
249     necessary.
250          (6) The state auditor may require all persons who have had the disposition or
251     management of any property of this state or its political subdivisions to submit statements
252     regarding it at the time and in the form that the auditor requires.
253          (7) The state auditor shall:
254          (a) except where otherwise provided by law, institute suits in Salt Lake County in
255     relation to the assessment, collection, and payment of its revenues against:
256          (i) persons who by any means have become entrusted with public money or property
257     and have failed to pay over or deliver the money or property; and
258          (ii) all debtors of the state;
259          (b) collect and pay into the state treasury all fees received by the state auditor;
260          (c) perform the duties of a member of all boards of which the state auditor is a member
261     by the constitution or laws of the state, and any other duties that are prescribed by the
262     constitution and by law;
263          (d) stop the payment of the salary of any state official or state employee who:
264          (i) refuses to settle accounts or provide required statements about the custody and
265     disposition of public funds or other state property;
266          (ii) refuses, neglects, or ignores the instruction of the state auditor or any controlling
267     board or department head with respect to the manner of keeping prescribed accounts or funds;
268     or
269          (iii) fails to correct any delinquencies, improper procedures, and errors brought to the
270     official's or employee's attention;
271          (e) establish accounting systems, methods, and forms for public accounts in all taxing
272     or fee-assessing units of the state in the interest of uniformity, efficiency, and economy;
273          (f) superintend the contractual auditing of all state accounts;

274          (g) subject to Subsection (8)(a), withhold state allocated funds or the disbursement of
275     property taxes from a state or local taxing or fee-assessing unit, if necessary, to ensure that
276     officials and employees in those taxing units comply with state laws and procedures in the
277     budgeting, expenditures, and financial reporting of public funds;
278          (h) subject to Subsection (9), withhold the disbursement of tax money from any county,
279     if necessary, to ensure that officials and employees in the county comply with Section
280     59-2-303.1; and
281          (i) withhold state allocated funds or the disbursement of property taxes from a local
282     government entity or a limited purpose entity, as those terms are defined in Section 67-1a-15 if
283     the state auditor finds the withholding necessary to ensure that the entity registers and
284     maintains the entity's registration with the lieutenant governor, in accordance with Section
285     67-1a-15.
286          (8) (a) Except as otherwise provided by law, the state auditor may not withhold funds
287     under Subsection (7)(g) until a state or local taxing or fee-assessing unit has received formal
288     written notice of noncompliance from the auditor and has been given 60 days to make the
289     specified corrections.
290          (b) If, after receiving notice under Subsection (8)(a), a state or independent local
291     fee-assessing unit that exclusively assesses fees has not made corrections to comply with state
292     laws and procedures in the budgeting, expenditures, and financial reporting of public funds, the
293     state auditor:
294          (i) shall provide a recommended timeline for corrective actions; [and]
295          (ii) may prohibit the state or local fee-assessing unit from accessing money held by the
296     state; and
297          (iii) may prohibit a state or local fee-assessing unit from accessing money held in an
298     account of a financial institution by filing an action in district court requesting an order of the
299     court to prohibit a financial institution from providing the fee-assessing unit access to an
300     account.
301          (c) The state auditor shall remove a limitation on accessing funds under Subsection
302     (8)(b) upon compliance with state laws and procedures in the budgeting, expenditures, and
303     financial reporting of public funds.
304          (d) If a local taxing or fee-assessing unit has not adopted a budget in compliance with

305     state law, the state auditor:
306          (i) shall provide notice to the taxing or fee-assessing unit of the unit's failure to
307     comply;
308          (ii) may prohibit the taxing or fee-assessing unit from accessing money held by the
309     state; and
310          (iii) may prohibit a taxing or fee-assessing unit from accessing money held in an
311     account of a financial institution by:
312          (A) contacting the taxing or fee-assessing unit's financial institution and requesting that
313     the institution prohibit access to the account; or
314          (B) filing an action in district court requesting an order of the court to prohibit a
315     financial institution from providing the taxing or fee-assessing unit access to an account.
316          (e) If the local taxing or fee-assessing unit adopts a budget in compliance with state
317     law, the state auditor shall eliminate a limitation on accessing funds described in Subsection
318     (8)(d).
319          (9) The state auditor may not withhold funds under Subsection (7)(h) until a county has
320     received formal written notice of noncompliance from the auditor and has been given 60 days
321     to make the specified corrections.
322          (10) (a) The state auditor may not withhold funds under Subsection (7)(i) until the state
323     auditor receives a notice of non-registration, as that term is defined in Section 67-1a-15.
324          (b) If the state auditor receives a notice of non-registration, the state auditor may
325     prohibit the local government entity or limited purpose entity, as those terms are defined in
326     Section 67-1a-15, from accessing:
327          (i) money held by the state; and
328          (ii) money held in an account of a financial institution by:
329          (A) contacting the entity's financial institution and requesting that the institution
330     prohibit access to the account; or
331          (B) filing an action in district court requesting an order of the court to prohibit a
332     financial institution from providing the entity access to an account.
333          (c) The state auditor shall remove the prohibition on accessing funds described in
334     Subsection (10)(b) if the state auditor received a notice of registration, as that term is defined in
335     Section 67-1a-15, from the lieutenant governor.

336          (11) Notwithstanding Subsection (7)(g), (7)(h), (7)(i), (8)(b), (8)(d), or (10)(b), the
337     state auditor:
338          (a) shall authorize a disbursement by a local government entity or limited purpose
339     entity, as those terms are defined in Section 67-1a-15, or a state or local taxing or fee-assessing
340     unit if the disbursement is necessary to:
341          (i) avoid a major disruption in the operations of the local government entity, limited
342     purpose entity, or state or local taxing or fee-assessing unit; or
343          (ii) meet debt service obligations; and
344          (b) may authorize a disbursement by a local government entity, limited purpose entity,
345     or state or local taxing or fee-assessing unit as the state auditor determines is appropriate.
346          (12) (a) The state auditor may seek relief under the Utah Rules of Civil Procedure to
347     take temporary custody of public funds if an action is necessary to protect public funds from
348     being improperly diverted from their intended public purpose.
349          (b) If the state auditor seeks relief under Subsection (12)(a):
350          (i) the state auditor is not required to exhaust the procedures in Subsection (7) or (8);
351     and
352          (ii) the state treasurer may hold the public funds in accordance with Section 67-4-1 if a
353     court orders the public funds to be protected from improper diversion from their public
354     purpose.
355          (13) The state auditor shall:
356          (a) establish audit guidelines and procedures for audits of local mental health and
357     substance abuse authorities and their contract providers, conducted pursuant to Title 17,
358     Chapter 43, Part 2, Local Substance Abuse Authorities, Title 17, Chapter 43, Part 3, Local
359     Mental Health Authorities, Title 51, Chapter 2a, Accounting Reports from Political
360     Subdivisions, Interlocal Organizations, and Other Local Entities Act, and Title 62A, Chapter
361     15, Substance Abuse and Mental Health Act; and
362          (b) ensure that those guidelines and procedures provide assurances to the state that:
363          (i) state and federal funds appropriated to local mental health authorities are used for
364     mental health purposes;
365          (ii) a private provider under an annual or otherwise ongoing contract to provide
366     comprehensive mental health programs or services for a local mental health authority is in

367     compliance with state and local contract requirements, and state and federal law;
368          (iii) state and federal funds appropriated to local substance abuse authorities are used
369     for substance abuse programs and services; and
370          (iv) a private provider under an annual or otherwise ongoing contract to provide
371     comprehensive substance abuse programs or services for a local substance abuse authority is in
372     compliance with state and local contract requirements, and state and federal law.
373          (14) The state auditor may, in accordance with the auditor's responsibilities for political
374     subdivisions of the state as provided in Title 51, Chapter 2a, Accounting Reports from Political
375     Subdivisions, Interlocal Organizations, and Other Local Entities Act, initiate audits or
376     investigations of any political subdivision that are necessary to determine honesty and integrity
377     in fiscal affairs, accuracy and reliability of financial statements, effectiveness, and adequacy of
378     financial controls and compliance with the law.
379          (15) (a) The state auditor may not audit work that the state auditor performed before
380     becoming state auditor.
381          (b) If the state auditor has previously been a responsible official in state government
382     whose work has not yet been audited, the Legislature shall:
383          (i) designate how that work shall be audited; and
384          (ii) provide additional funding for those audits, if necessary.
385          (16) The state auditor shall:
386          (a) with the assistance, advice, and recommendations of an advisory committee
387     appointed by the state auditor from among local district boards of trustees, officers, and
388     employees and special service district boards, officers, and employees:
389          (i) prepare a Uniform Accounting Manual for Local Districts that:
390          (A) prescribes a uniform system of accounting and uniform budgeting and reporting
391     procedures for local districts under Title 17B, Limited Purpose Local Government Entities -
392     Local Districts, and special service districts under Title 17D, Chapter 1, Special Service
393     District Act;
394          (B) conforms with generally accepted accounting principles; and
395          (C) prescribes reasonable exceptions and modifications for smaller districts to the
396     uniform system of accounting, budgeting, and reporting;
397          (ii) maintain the manual under this Subsection [(15)] (16)(a) so that it continues to

398     reflect generally accepted accounting principles;
399          (iii) conduct a continuing review and modification of procedures in order to improve
400     them;
401          (iv) prepare and supply each district with suitable budget and reporting forms; and
402          (v) (A) prepare instructional materials, conduct training programs, and render other
403     services considered necessary to assist local districts and special service districts in
404     implementing the uniform accounting, budgeting, and reporting procedures; and
405          (B) ensure that any training described in Subsection [(15)] (16)(a)(v)(A) complies with
406     Title 63G, Chapter 22, State Training and Certification Requirements; and
407          (b) continually analyze and evaluate the accounting, budgeting, and reporting practices
408     and experiences of specific local districts and special service districts selected by the state
409     auditor and make the information available to all districts.
410          (17) (a) The following records in the custody or control of the state auditor are
411     protected records under Title 63G, Chapter 2, Government Records Access and Management
412     Act:
413          (i) records that would disclose information relating to allegations of personal
414     misconduct, gross mismanagement, or illegal activity of a past or present governmental
415     employee if the information or allegation cannot be corroborated by the state auditor through
416     other documents or evidence, and the records relating to the allegation are not relied upon by
417     the state auditor in preparing a final audit report;
418          (ii) records and audit workpapers to the extent they would disclose the identity of a
419     person who during the course of an audit, communicated the existence of any waste of public
420     funds, property, or manpower, or a violation or suspected violation of a law, rule, or regulation
421     adopted under the laws of this state, a political subdivision of the state, or any recognized entity
422     of the United States, if the information was disclosed on the condition that the identity of the
423     person be protected;
424          (iii) before an audit is completed and the final audit report is released, records or drafts
425     circulated to a person who is not an employee or head of a governmental entity for their
426     response or information;
427          (iv) records that would disclose an outline or part of any audit survey plans or audit
428     program; and

429          (v) requests for audits, if disclosure would risk circumvention of an audit.
430          (b) The provisions of Subsections (17)(a)(i), (ii), and (iii) do not prohibit the disclosure
431     of records or information that relate to a violation of the law by a governmental entity or
432     employee to a government prosecutor or peace officer.
433          (c) The provisions of this Subsection (17) do not limit the authority otherwise given to
434     the state auditor to classify a document as public, private, controlled, or protected under Title
435     63G, Chapter 2, Government Records Access and Management Act.
436          (d) (i) As used in this Subsection (17)(d), "record dispute" means a dispute between the
437     state auditor and the subject of an audit performed by the state auditor as to whether the state
438     auditor may release a record, as defined in Section 63G-2-103, to the public that the state
439     auditor gained access to in the course of the state auditor's audit but which the subject of the
440     audit claims is not subject to disclosure under Title 63G, Chapter 2, Government Records
441     Access and Management Act.
442          (ii) The state auditor may submit a record dispute to the State Records Committee,
443     created in Section 63G-2-501, for a determination of whether the state auditor may, in
444     conjunction with the state auditor's release of an audit report, release to the public the record
445     that is the subject of the record dispute.
446          (iii) The state auditor or the subject of the audit may seek judicial review of a State
447     Records Committee determination under Subsection (17)(d)(ii), as provided in Section
448     63G-2-404.
449          (18) If the state auditor conducts an audit of an entity that the state auditor has
450     previously audited and finds that the entity has not implemented a recommendation made by
451     the state auditor in a previous audit, the state auditor shall notify the Legislative Management
452     Committee through its audit subcommittee that the entity has not implemented that
453     recommendation.
454          (19) (a) As used in this subsection, "governmental nonprofit corporation" means the
455     same as that term is defined in Section 11-13a-102.
456          (b) The state auditor shall:
457          (i) develop a training or other informational resource to aid a governmental nonprofit
458     corporation in implementing best practices for financial controls and board governance; and
459          (ii) provide the training or other informational resource described in Subsection

460     (19)(b)(i) to each of the following entities that provides any required budgeting, expenditure, or
461     financial report to the state auditor:
462          (A) a governmental nonprofit corporation;
463          (B) a state agency or political subdivision of the state that wholly controls or has a
464     controlling interest in a governmental nonprofit corporation, as described in Section
465     11-13a-102; and
466          (C) any other entity that, in the opinion of the state auditor, could benefit from the
467     resource.