Representative Melissa G. Ballard proposes the following substitute bill:




Chief Sponsor: Melissa G. Ballard

Senate Sponsor: Don L. Ipson


8     General Description:
9          This bill modifies provisions related to government performance reporting and
10     efficiency requirements.
11     Highlighted Provisions:
12          This bill:
13          ▸     defines terms;
14          ▸     modifies the duties of the Office of the Legislative Fiscal Analyst and the Office of
15     the Legislative Auditor General related to government processes targeted for
16     efficiency improvements;
17          ▸     modifies the process by which an agency develops and reports performance
18     measures;
19          ▸     requires the Governor's Office of Management and Budget and the Office of the
20     Legislative Fiscal Analyst to:
21               •      establish a process to target certain government processes for efficiency
22     improvements; and
23               •     report annually regarding the status of the efficiency improvement process and
24     any recommended changes;
25          ▸     clarifies that the judicial department and the legislative department are not subject

26     to certain performance reporting requirements; and
27          ▸     makes technical and conforming changes.
28     Money Appropriated in this Bill:
29          None
30     Other Special Clauses:
31          None
32     Utah Code Sections Affected:
33     AMENDS:
34          36-12-13, as last amended by Laws of Utah 2018, Chapter 248
35          36-12-15, as last amended by Laws of Utah 2020, Chapter 356
36          63I-1-263, as last amended by Laws of Utah 2020, Chapters 82, 152, 154, 199, 230,
37     303, 322, 336, 354, 360, 375, 405 and last amended by Coordination Clause, Laws
38     of Utah 2020, Chapter 360
39          63J-1-201, as last amended by Laws of Utah 2020, Chapter 152
40          63J-1-602.2, as last amended by Laws of Utah 2020, Fifth Special Session, Chapter 20
41     ENACTS:
42          63J-1-901, Utah Code Annotated 1953
43          63J-1-902, Utah Code Annotated 1953
44          63J-1-903, Utah Code Annotated 1953
45          63J-1-904, Utah Code Annotated 1953
46     REPEALS:
47          36-24-101, as last amended by Laws of Utah 2011, Chapter 342

49     Be it enacted by the Legislature of the state of Utah:
50          Section 1. Section 36-12-13 is amended to read:
51          36-12-13. Office of the Legislative Fiscal Analyst established -- Powers, functions,
52     and duties -- Qualifications.
53          (1) There is established an Office of the Legislative Fiscal Analyst as a permanent staff
54     office for the Legislature.
55          (2) The powers, functions, and duties of the Office of the Legislative Fiscal Analyst
56     under the supervision of the fiscal analyst are:

57          (a) (i) to estimate general revenue collections, including comparisons of:
58          (A) current estimates for each major tax type to long-term trends for that tax type;
59          (B) current estimates for federal fund receipts to long-term federal fund trends; and
60          (C) current estimates for tax collections and federal fund receipts to long-term trends
61     deflated for the inflationary effects of debt monetization; and
62          (ii) to report the analysis required under Subsection (2)(a)(i) to the Legislature's
63     Executive Appropriations Committee before each annual general session of the Legislature;
64          (b) to analyze in detail the state budget before the convening of each legislative session
65     and make recommendations to the Legislature on each item or program appearing in the
66     budget, including:
67          (i) funding for and performance of programs, acquisitions, and services currently
68     undertaken by state government to determine whether each department, agency, institution, or
69     program should:
70          (A) continue at its current level of expenditure;
71          (B) continue at a different level of expenditure; or
72          (C) be terminated; and
73          (ii) increases or decreases to spending authority and other resource allocations for the
74     current and future fiscal years;
75          (c) to prepare on all proposed bills fiscal estimates that reflect:
76          (i) potential state government revenue impacts;
77          (ii) anticipated state government expenditure changes;
78          (iii) anticipated expenditure changes for county, municipal, local district, or special
79     service district governments; and
80          (iv) anticipated direct expenditure by Utah residents and businesses, including the unit
81     cost, number of units, and total cost to all impacted residents and businesses;
82          (d) to indicate whether each proposed bill will impact the regulatory burden for Utah
83     residents or businesses, and if so:
84          (i) whether the impact increases or decreases the regulatory burden; and
85          (ii) whether the change in burden is high, medium, or low;
86          (e) beginning in 2017 and repeating every three years after 2017, to prepare the
87     following cycle of analyses of long-term fiscal sustainability:

88          (i) in year one, the joint revenue volatility report required under Section 63J-1-205;
89          (ii) in year two, a long-term budget for programs appropriated from major funds and
90     tax types; and
91          (iii) in year three, a budget stress test comparing estimated future revenue to and
92     expenditure from major funds and tax types under various potential economic conditions;
93          (f) to report instances in which the administration may be failing to carry out the
94     expressed intent of the Legislature;
95          (g) to propose and analyze statutory changes for more effective operational economies
96     or more effective administration;
97          (h) to prepare, before each annual general session of the Legislature, a summary
98     showing the current status of the following as compared to the past nine fiscal years:
99          (i) debt;
100          (ii) long-term liabilities;
101          (iii) contingent liabilities;
102          (iv) General Fund borrowing;
103          (v) reserves;
104          (vi) fund and nonlapsing balances; and
105          (vii) cash funded capital investments;
106          (i) to make recommendations for addressing the items described in Subsection (2)(h) in
107     the upcoming annual general session of the Legislature;
108          (j) to prepare, after each session of the Legislature, a summary showing the effect of
109     the final legislative program on the financial condition of the state;
110          (k) to conduct organizational and management improvement studies in accordance
111     with Title 63J, Chapter 1, Part 9, Government Performance Reporting and Efficiency Process,
112     and legislative rule;
113          (l) to prepare and deliver upon request of any interim committee or the Legislative
114     Management Committee, reports on the finances of the state and on anticipated or proposed
115     requests for appropriations;
116          (m) to recommend areas for research studies by the executive department or the interim
117     committees;
118          (n) to appoint and develop a professional staff within budget limitations;

119          (o) to prepare and submit the annual budget request for the office;
120          (p) to develop a taxpayer receipt:
121          (i) available to taxpayers through a website; and
122          (ii) that allows a taxpayer to view on the website an estimate of how the taxpayer's tax
123     dollars are expended for government purposes; and
124          (q) to publish or provide other information on taxation and government expenditures
125     that may be accessed by the public.
126          (3) The legislative fiscal analyst shall have a master's degree in public administration,
127     political science, economics, accounting, or the equivalent in academic or practical experience.
128          (4) In carrying out the duties provided for in this section, the legislative fiscal analyst
129     may obtain access to all records, documents, and reports necessary to the scope of the
130     legislative fiscal analyst's duties according to the procedures contained in Title 36, Chapter 14,
131     Legislative Subpoena Powers.
132          Section 2. Section 36-12-15 is amended to read:
133          36-12-15. Office of the Legislative Auditor General established -- Qualifications --
134     Powers, functions, and duties.
135          (1) There is created an Office of the Legislative Auditor General as a permanent staff
136     office for the Legislature.
137          (2) The legislative auditor general shall be a licensed certified public accountant or
138     certified internal auditor with at least five years of experience in the auditing or public
139     accounting profession, or the equivalent, prior to appointment.
140          (3) The legislative auditor general shall appoint and develop a professional staff within
141     budget limitations.
142          (4) (a) The Office of the Legislative Auditor General shall exercise the constitutional
143     authority provided in Article VI, Sec. 33, Utah Constitution.
144          (b) Under the direction of the legislative auditor general, the office shall:
145          (i) conduct comprehensive and special purpose audits, examinations, and reviews of
146     any entity that receives public funds;
147          (ii) prepare and submit a written report on each audit, examination, or review to the
148     Legislative Management Committee, the audit subcommittee, and to all members of the
149     Legislature within 75 days after the audit or examination is completed; and

150          [(iii) as provided in Section 36-24-101:]
151          [(A) monitor all new programs and agencies created during each Annual General
152     Session or Special Session of the Legislature;]
153          [(B) provide each new program and agency created with a list of best practices in
154     setting up their program or agency, including:]
155          [(I) policies;]
156          [(II) performance measures; and]
157          [(III) data collection;]
158          [(C) send each new program and agency:]
159          [(I) within one year after its creation, a survey instrument requesting a self evaluation
160     that includes policies, performance measures, and data collection; and]
161          [(II) within two years after its creation, a survey instrument requesting a self evaluation
162     that includes policies, performance measures, and data collection; and]
163          [(D) (I) using the new program or agency's response to the self evaluation survey
164     instruments, recommend to the legislative audit subcommittee that the office conduct an audit
165     of those new programs and agencies created on which questions have arisen as a result of the
166     response to the survey instrument and provide a limited scope audit report on those new
167     programs or agencies on which it receives direction to audit to the legislative interim
168     committee and to the legislative appropriations subcommittee with oversight responsibility for
169     that program or agency on or before the November interim meeting; and]
170          [(II) include within this limited scope audit report a recommendation as to whether the
171     program or agency is fulfilling its statutory guidelines and directives.]
172          (iii) monitor and conduct a risk assessment of any efficiency evaluations in accordance
173     with Title 63J, Chapter 1, Part 9, Government Performance Reporting and Efficiency Process,
174     and legislative rule.
175          (5) The audit, examination, or review of any entity that receives public funds may
176     include a determination of any or all of the following:
177          (a) the honesty and integrity of all [its] the entity's fiscal affairs;
178          (b) the accuracy and reliability of [its] the entity's financial statements and reports;
179          (c) whether or not [its] the entity's financial controls are adequate and effective to
180     properly record and safeguard its acquisition, custody, use, and accounting of public funds;

181          (d) whether or not [its] the entity's administrators have faithfully adhered to legislative
182     intent;
183          (e) whether or not [its] the entity's operations have been conducted in an efficient,
184     effective, and cost efficient manner;
185          (f) whether or not [its] the entity's programs have been effective in accomplishing
186     intended objectives; and
187          (g) whether or not [its] the entity's management control and information systems are
188     adequate and effective.
189          (6) The Office of the Legislative Auditor General:
190          (a) (i) shall, notwithstanding any other provision of law, have access to all records,
191     documents, and reports of any entity that receives public funds that are necessary to the scope
192     of the duties of the legislative auditor general or the office; and
193          (ii) may issue a subpoena to obtain access as provided in Subsection (6)(a)(i) using the
194     procedures contained in Title 36, Chapter 14, Legislative Subpoena Powers;
195          (b) establish policies, procedures, methods, and standards of audit work for the office
196     and staff;
197          (c) prepare and submit each audit report without interference from any source relative
198     to the content of the report, the conclusions reached in the report, or the manner of disclosing
199     the results of the legislative auditor general's findings; and
200          (d) prepare and submit the annual budget request for the office.
201          (7) To preserve the professional integrity and independence of the office:
202          (a) no legislator or public official may urge the appointment of any person to the office;
203     and
204          (b) the legislative auditor general may not be appointed to serve on any board,
205     authority, commission, or other agency of the state during the legislative auditor general's term
206     as legislative auditor general.
207          (8) The following records in the custody or control of the legislative auditor general
208     shall be protected records under Title 63G, Chapter 2, Government Records Access and
209     Management Act:
210          (a) Records that would disclose information relating to allegations of personal
211     misconduct, gross mismanagement, or illegal activity of a past or present governmental

212     employee if the information or allegation cannot be corroborated by the legislative auditor
213     general through other documents or evidence, and the records relating to the allegation are not
214     relied upon by the legislative auditor general in preparing a final audit report.
215          (b) Records and audit workpapers to the extent they would disclose the identity of a
216     person who during the course of a legislative audit, communicated the existence of any waste
217     of public funds, property, or manpower, or a violation or suspected violation of a law, rule, or
218     regulation adopted under the laws of this state, a political subdivision of the state, or any
219     recognized entity of the United States, if the information was disclosed on the condition that
220     the identity of the person be protected.
221          (c) Prior to the time that an audit is completed and the final audit report is released,
222     records or drafts circulated to a person who is not an employee or head of a governmental
223     entity for their response or information.
224          (d) Records that would disclose an outline or part of any audit survey plans or audit
225     program.
226          (e) Requests for audits, if disclosure would risk circumvention of an audit.
227          (f) The provisions of Subsections (8)(a), (b), and (c) do not prohibit the disclosure of
228     records or information that relate to a violation of the law by a governmental entity or
229     employee to a government prosecutor or peace officer.
230          (g) The provisions of this section do not limit the authority otherwise given to the
231     legislative auditor general to classify a document as public, private, controlled, or protected
232     under Title 63G, Chapter 2, Government Records Access and Management Act.
233          (9) The legislative auditor general shall:
234          (a) be available to the Legislature and to [its] the Legislature's committees for
235     consultation on matters relevant to areas of the legislative auditor general's professional
236     competence;
237          (b) conduct special audits as requested by the Legislative Management Committee;
238          (c) report immediately in writing to the Legislative Management Committee through its
239     audit subcommittee any apparent violation of penal statutes disclosed by the audit of a state
240     agency and furnish to the Legislative Management Committee all information relative to the
241     apparent violation;
242          (d) report immediately in writing to the Legislative Management Committee through

243     its audit subcommittee any apparent instances of malfeasance or nonfeasance by a state officer
244     or employee disclosed by the audit of a state agency; and
245          (e) make any recommendations to the Legislative Management Committee through its
246     audit subcommittee with respect to the alteration or improvement of the accounting system
247     used by any entity that receives public funds.
248          (10) If the legislative auditor general conducts an audit of a state agency that has
249     previously been audited and finds that the state agency has not implemented a recommendation
250     made by the legislative auditor general in a previous audit, the legislative auditor general shall,
251     upon release of the audit:
252          (a) report immediately in writing to the Legislative Management Committee through its
253     audit subcommittee that the state agency has not implemented that recommendation; and
254          (b) shall report, as soon as possible, that the state agency has not implemented that
255     recommendation to a meeting of an appropriate legislative committee designated by the audit
256     subcommittee of the Legislative Management Committee.
257          (11) (a) Prior to each annual general session, the legislative auditor general shall
258     prepare a summary of the audits conducted and of actions taken based upon them during the
259     preceding year.
260          (b) This report shall also set forth any items and recommendations that are important
261     for consideration in the forthcoming session, together with a brief statement or rationale for
262     each item or recommendation.
263          (c) The legislative auditor general shall deliver the report to the Legislature and to the
264     appropriate committees of the Legislature.
265          (12) (a) No person or entity may:
266          (i) interfere with a legislative audit, examination, or review of any entity conducted by
267     the office; or
268          (ii) interfere with the office relative to the content of the report, the conclusions
269     reached in the report, or the manner of disclosing the results and findings of the office.
270          (b) Any person or entity that violates the provisions of this Subsection (12) is guilty of
271     a class B misdemeanor.
272          (13) (a) Beginning July 1, 2020, the Office of the Legislative Auditor General may
273     require any current employee, or any applicant for employment, to submit to a

274     fingerprint-based local, regional, and criminal history background check as an ongoing
275     condition of employment.
276          (b) An employee or applicant for employment shall provide a completed fingerprint
277     card to the office upon request. The office shall require that an individual required to submit to
278     a background check under this subsection also provide a signed waiver on a form provided by
279     the office that meets the requirements of Subsection 53-10-108(4).
280          (c) For a noncriminal justice background search and registration in accordance with
281     Subsection 53-10-108(13), the office shall submit to the Bureau of Criminal Identification:
282          (i) the employee's or applicant's personal identifying information and fingerprints for a
283     criminal history search of applicable local, regional, and national databases; and
284          (ii) a request for all information received as a result of the local, regional, and
285     nationwide background check.
286          Section 3. Section 63I-1-263 is amended to read:
287          63I-1-263. Repeal dates, Titles 63A to 63N.
288          (1) In relation to the Utah Transparency Advisory Board, on January 1, 2025:
289          (a) Subsection 63A-1-201(1) is repealed;
290          (b) Subsection 63A-1-202(2)(c), the language "using criteria established by the board"
291     is repealed;
292          (c) Section 63A-1-203 is repealed;
293          (d) Subsections 63A-1-204(1) and (2), the language "After consultation with the board,
294     and" is repealed; and
295          (e) Subsection 63A-1-204(1)(b), the language "using the standards provided in
296     Subsection 63A-1-203(3)(c)" is repealed.
297          (2) Subsection 63A-5b-405(5), relating to prioritizing and allocating capital
298     improvement funding, is repealed July 1, 2024.
299          (3) Section 63A-5b-1003, State Facility Energy Efficiency Fund, is repealed July 1,
300     2023.
301          (4) Sections 63A-9-301 and 63A-9-302, related to the Motor Vehicle Review
302     Committee, are repealed July 1, 2023.
303          (5) Title 63C, Chapter 4a, Constitutional and Federalism Defense Act, is repealed July
304     1, 2028.

305          (6) Title 63C, Chapter 6, Utah Seismic Safety Commission, is repealed January 1,
306     2025.
307          (7) Title 63C, Chapter 12, Snake Valley Aquifer Advisory Council, is repealed July 1,
308     2024.
309          (8) Title 63C, Chapter 17, Point of the Mountain Development Commission Act, is
310     repealed July 1, 2021.
311          (9) Title 63C, Chapter 18, Behavioral Health Crisis Response Commission, is repealed
312     July 1, 2023.
313          (10) Title 63C, Chapter 21, Outdoor Adventure Commission, is repealed July 1, 2025.
314          (11) Title 63F, Chapter 2, Data Security Management Council, is repealed July 1,
315     2025.
316          (12) Section 63G-6a-805, which creates the Purchasing from Persons with Disabilities
317     Advisory Board, is repealed July 1, 2026.
318          (13) Title 63G, Chapter 21, Agreements to Provide State Services, is repealed July 1,
319     2025.
320          (14) Title 63H, Chapter 4, Heber Valley Historic Railroad Authority, is repealed July 1,
321     2024.
322          (15) Title 63H, Chapter 8, Utah Housing Corporation Act, is repealed July 1, 2026.
323          (16) Subsection 63J-1-602.1(14), Nurse Home Visiting Restricted Account is repealed
324     July 1, 2026.
325          (17) (a) Subsection 63J-1-602.1(58), relating to the Utah Statewide Radio System
326     Restricted Account, is repealed July 1, 2022.
327          (b) When repealing Subsection 63J-1-602.1(58), the Office of Legislative Research and
328     General Counsel shall, in addition to the office's authority under Subsection 36-12-12(3), make
329     necessary changes to subsection numbering and cross references.
330          (18) Subsection 63J-1-602.2[(4)](5), referring to dedicated credits to the Utah Marriage
331     Commission, is repealed July 1, 2023.
332          (19) Subsection 63J-1-602.2[(5)](6), referring to the Trip Reduction Program, is
333     repealed July 1, 2022.
334          (20) Subsection 63J-1-602.2[(25)](24), related to the Utah Seismic Safety
335     Commission, is repealed January 1, 2025.

336          (21) Title 63J, Chapter 4, Part 5, Resource Development Coordinating Committee, is
337     repealed July 1, 2027.
338          (22) Subsection 63J-4-608(3), which creates the Federal Land Application Advisory
339     Committee, is repealed on July 1, 2021.
340          (23) In relation to the Utah Substance Use and Mental Health Advisory Council, on
341     January 1, 2023:
342          (a) Sections 63M-7-301, 63M-7-302, 63M-7-303, 63M-7-304, and 63M-7-306 are
343     repealed;
344          (b) Section 63M-7-305, the language that states "council" is replaced with
345     "commission";
346          (c) Subsection 63M-7-305(1) is repealed and replaced with:
347          "(1) "Commission" means the Commission on Criminal and Juvenile Justice."; and
348          (d) Subsection 63M-7-305(2) is repealed and replaced with:
349          "(2) The commission shall:
350          (a) provide ongoing oversight of the implementation, functions, and evaluation of the
351     Drug-Related Offenses Reform Act; and
352          (b) coordinate the implementation of Section 77-18-1.1 and related provisions in
353     Subsections 77-18-1(5)(b)(iii) and (iv).".
354          (24) The Crime Victim Reparations and Assistance Board, created in Section
355     63M-7-504, is repealed July 1, 2027.
356          (25) Title 63M, Chapter 7, Part 6, Utah Council on Victims of Crime, is repealed July
357     1, 2022.
358          (26) Title 63M, Chapter 11, Utah Commission on Aging, is repealed July 1, 2021.
359          (27) Subsection 63N-1-301(4)(c), related to the Talent Ready Utah Board, is repealed
360     January 1, 2023.
361          (28) Title 63N, Chapter 1, Part 5, Governor's Economic Development Coordinating
362     Council, is repealed July 1, 2024.
363          (29) Title 63N, Chapter 2, Part 2, Enterprise Zone Act, is repealed July 1, 2028.
364          (30) Section 63N-2-512 is repealed July 1, 2021.
365          (31) (a) Title 63N, Chapter 2, Part 6, Utah Small Business Jobs Act, is repealed
366     January 1, 2021.

367          (b) Section 59-9-107 regarding tax credits against premium taxes is repealed for
368     calendar years beginning on or after January 1, 2021.
369          (c) Notwithstanding Subsection (31)(b), an entity may carry forward a tax credit in
370     accordance with Section 59-9-107 if:
371          (i) the person is entitled to a tax credit under Section 59-9-107 on or before December
372     31, 2020; and
373          (ii) the qualified equity investment that is the basis of the tax credit is certified under
374     Section 63N-2-603 on or before December 31, 2023.
375          (32) Subsections 63N-3-109(2)(e) and 63N-3-109(2)(f)(i) are repealed July 1, 2023.
376          (33) Title 63N, Chapter 4, Part 4, Rural Employment Expansion Program, is repealed
377     July 1, 2023.
378          (34) Title 63N, Chapter 7, Part 1, Board of Tourism Development, is repealed July 1,
379     2025.
380          (35) Title 63N, Chapter 9, Part 2, Outdoor Recreational Infrastructure Grant Program,
381     is repealed January 1, 2023.
382          (36) Title 63N, Chapter 12, Part 5, Talent Ready Utah Center, is repealed January 1,
383     2023.
384          Section 4. Section 63J-1-201 is amended to read:
385          63J-1-201. Governor's proposed budget to Legislature -- Contents -- Preparation
386     -- Appropriations based on current tax laws and not to exceed estimated revenues.
387          (1) The governor shall deliver, not later than 30 days before the date the Legislature
388     convenes in the annual general session, a confidential draft copy of the governor's proposed
389     budget recommendations to the Office of the Legislative Fiscal Analyst according to the
390     requirements of this section.
391          (2) (a) When submitting a proposed budget, the governor shall, within the first three
392     days of the annual general session of the Legislature, submit to the presiding officer of each
393     house of the Legislature:
394          (i) a proposed budget for the ensuing fiscal year;
395          (ii) a schedule for all of the proposed changes to appropriations in the proposed budget,
396     with each change clearly itemized and classified; and
397          (iii) as applicable, a document showing proposed changes in estimated revenues that

398     are based on changes in state tax laws or rates.
399          (b) The proposed budget shall include:
400          (i) a projection of:
401          (A) estimated revenues by major tax type;
402          (B) 15-year trends for each major tax type;
403          (C) estimated receipts of federal funds;
404          (D) 15-year trends for federal fund receipts; and
405          (E) appropriations for the next fiscal year;
406          (ii) the source of changes to all direct, indirect, and in-kind matching funds for all
407     federal grants or assistance programs included in the budget;
408          (iii) changes to debt service;
409          (iv) a plan of proposed changes to appropriations and estimated revenues for the next
410     fiscal year that is based upon the current fiscal year state tax laws and rates and considers
411     projected changes in federal grants or assistance programs included in the budget;
412          (v) an itemized estimate of the proposed changes to appropriations for:
413          (A) the [Legislative Department] legislative department as certified to the governor by
414     the president of the Senate and the speaker of the House;
415          (B) the [Executive Department] executive department;
416          (C) the [Judicial Department] judicial department as certified to the governor by the
417     state court administrator;
418          (D) changes to salaries payable by the state under the Utah Constitution or under law
419     for lease agreements planned for the next fiscal year; and
420          (E) all other changes to ongoing or one-time appropriations, including dedicated
421     credits, restricted funds, nonlapsing balances, grants, and federal funds;
422          (vi) for each line item, the average annual dollar amount of staff funding associated
423     with all positions that were vacant during the last fiscal year;
424          (vii) deficits or anticipated deficits;
425          (viii) the recommendations for each state agency for new full-time employees for the
426     next fiscal year, which shall also be provided to the director of the Division of Facilities
427     Construction and Management as required by Subsection 63A-5b-501(3);
428          (ix) a written description and itemized report submitted by a state agency to the

429     Governor's Office of Management and Budget under Section 63J-1-220, including:
430          (A) a written description and an itemized report provided at least annually detailing the
431     expenditure of the state money, or the intended expenditure of any state money that has not
432     been spent; and
433          (B) a final written itemized report when all the state money is spent;
434          (x) any explanation that the governor may desire to make as to the important features
435     of the budget and any suggestion as to methods for the reduction of expenditures or increase of
436     the state's revenue; and
437          (xi) information detailing certain fee increases as required by Section 63J-1-504.
438          (3) (a) [For] Except as provided in Subsection (3)(b), for the purpose of preparing and
439     reporting the proposed budget, the governor:
440          [(a) The governor]
441          (i) shall require the proper state officials, including all public and higher education
442     officials, all heads of executive and administrative departments and state institutions, bureaus,
443     boards, commissions, and agencies expending or supervising the expenditure of the state
444     money, and all institutions applying for state money and appropriations, to provide itemized
445     estimates of changes in revenues and appropriations[.];
446          [(b) The governor]
447          (ii) may require the persons and entities subject to Subsection (3)(a)(i) to provide other
448     information under these guidelines and at times as the governor may direct, which may include
449     a requirement for program productivity and performance measures, where appropriate, with
450     emphasis on outcome indicators[.]; and
451          [(c) The governor]
452          (iii) may require representatives of public and higher education, state departments and
453     institutions, and other institutions or individuals applying for state appropriations to attend
454     budget meetings.
455          (b) Subsections (3)(a)(ii) and (iii) do not apply to the judicial department or the
456     legislative department.
457          (4) (a) The Governor's Office of Management and Budget shall provide to the Office of
458     the Legislative Fiscal Analyst, as soon as practicable, but no later than 30 days before the [date]
459     day on which the Legislature convenes in the annual general session, data, analysis, or requests

460     used in preparing the governor's budget recommendations, notwithstanding the restrictions
461     imposed on such recommendations by available revenue.
462          (b) The information under Subsection (4)(a) shall include:
463          (i) actual revenues and expenditures for the fiscal year ending the previous June 30;
464          (ii) estimated or authorized revenues and expenditures for the current fiscal year;
465          (iii) requested revenues and expenditures for the next fiscal year;
466          (iv) detailed explanations of any differences between the amounts appropriated by the
467     Legislature in the current fiscal year and the amounts reported under Subsections (4)(b)(ii) and
468     (iii); and
469          [(v) a statement of:]
470          [(A) agency and program objectives, effectiveness measures, and program size
471     indicators;]
472          [(B) the final status of the program objectives, effectiveness measures, and program
473     size indicators included in the appropriations act for the fiscal year ending the previous June
474     30; and]
475          [(C) the current status of the program objectives, effectiveness measures, and program
476     size indicators included in the appropriations act for the current fiscal year; and]
477          [(vi)] (v) other budgetary information required by the Legislature in statute.
478          (c) The budget information under Subsection (4)(a) shall cover:
479          (i) all items of appropriation, funds, and accounts included in appropriations acts for
480     the current and previous fiscal years; and
481          (ii) any new appropriation, fund, or account items requested for the next fiscal year.
482          (d) The information provided under Subsection (4)(a) may be provided as a shared
483     record under Section 63G-2-206 as considered necessary by the Governor's Office of
484     Management and Budget.
485          (5) (a) In submitting the budget for the Department of Public Safety, the governor shall
486     include a separate recommendation in the governor's budget for maintaining a sufficient
487     number of alcohol-related law enforcement officers to maintain the enforcement ratio equal to
488     or below the number specified in Subsection 32B-1-201(2).
489          (b) If the governor does not include in the governor's budget an amount sufficient to
490     maintain the number of alcohol-related law enforcement officers described in Subsection

491     (5)(a), the governor shall include a message to the Legislature regarding the governor's reason
492     for not including that amount.
493          (6) (a) The governor may revise all estimates, except those relating to the [Legislative
494     Department, the Judicial Department] legislative department, the judicial department, and those
495     providing for the payment of principal and interest to the state debt and for the salaries and
496     expenditures specified by the Utah Constitution or under the laws of the state.
497          (b) The estimate for the [Judicial Department] judicial department, as certified by the
498     state court administrator, shall also be included in the budget without revision, but the governor
499     may make separate recommendations on the estimate.
500          (7) The total appropriations requested for expenditures authorized by the budget may
501     not exceed the estimated revenues from taxes, fees, and all other sources for the next ensuing
502     fiscal year.
503          (8) If any item of the budget as enacted is held invalid upon any ground, the invalidity
504     does not affect the budget itself or any other item in [it] the budget.
505          Section 5. Section 63J-1-602.2 is amended to read:
506          63J-1-602.2. List of nonlapsing appropriations to programs.
507          Appropriations made to the following programs are nonlapsing:
508          (1) The Legislature and the Legislature's committees.
509          (2) The State Board of Education, including all appropriations to agencies, line items,
510     and programs under the jurisdiction of the State Board of Education, in accordance with
511     Section 53F-9-103.
512          (3) The Percent-for-Art Program created in Section 9-6-404.
513          (4) The LeRay McAllister Critical Land Conservation Program created in Section
514     11-38-301.
515          (5) Dedicated credits accrued to the Utah Marriage Commission as provided under
516     Subsection 17-16-21(2)(d)(ii).
517          (6) The Trip Reduction Program created in Section 19-2a-104.
518          (7) The Division of Wildlife Resources for the appraisal and purchase of lands under
519     the Pelican Management Act, as provided in Section 23-21a-6.
520          (8) The emergency medical services grant program in Section 26-8a-207.
521          (9) The primary care grant program created in Section 26-10b-102.

522          (10) Sanctions collected as dedicated credits from Medicaid provider under Subsection
523     26-18-3(7).
524          (11) The Utah Health Care Workforce Financial Assistance Program created in Section
525     26-46-102.
526          (12) The Rural Physician Loan Repayment Program created in Section 26-46a-103.
527          (13) The Opiate Overdose Outreach Pilot Program created in Section 26-55-107.
528          (14) Funds that the Department of Alcoholic Beverage Control retains in accordance
529     with Subsection 32B-2-301(8)(a) or (b).
530          (15) The General Assistance program administered by the Department of Workforce
531     Services, as provided in Section 35A-3-401.
532          [(16) A new program or agency that is designated as nonlapsing under Section
533     36-24-101.]
534          [(17)] (16) The Utah National Guard, created in Title 39, Militia and Armories.
535          [(18)] (17) The State Tax Commission under Section 41-1a-1201 for the:
536          (a) purchase and distribution of license plates and decals; and
537          (b) administration and enforcement of motor vehicle registration requirements.
538          [(19)] (18) The Search and Rescue Financial Assistance Program, as provided in
539     Section 53-2a-1102.
540          [(20)] (19) The Motorcycle Rider Education Program, as provided in Section 53-3-905.
541          [(21)] (20) The Utah Board of Higher Education for teacher preparation programs, as
542     provided in Section 53B-6-104.
543          [(22)] (21) The Medical Education Program administered by the Medical Education
544     Council, as provided in Section 53B-24-202.
545          [(23)] (22) The Division of Services for People with Disabilities, as provided in
546     Section 62A-5-102.
547          [(24)] (23) The Division of Fleet Operations for the purpose of upgrading underground
548     storage tanks under Section 63A-9-401.
549          [(25)] (24) The Utah Seismic Safety Commission, as provided in Section 63C-6-104.
550          [(26)] (25) Appropriations to the Department of Technology Services for technology
551     innovation as provided under Section 63F-4-202.
552          [(27)] (26) The Office of Administrative Rules for publishing, as provided in Section

553     63G-3-402.
554          [(28)] (27) The Governor's Office of Economic Development to fund the Enterprise
555     Zone Act, as provided in Title 63N, Chapter 2, Part 2, Enterprise Zone Act.
556          [(29)] (28) Appropriations to fund the Governor's Office of Economic Development's
557     Rural Employment Expansion Program, as described in Title 63N, Chapter 4, Part 4, Rural
558     Employment Expansion Program.
559          [(30)] (29) Appropriations to fund programs for the Jordan River Recreation Area as
560     described in Section 65A-2-8.
561          [(31)] (30) The Department of Human Resource Management user training program, as
562     provided in Section 67-19-6.
563          [(32)] (31) A public safety answering point's emergency telecommunications service
564     fund, as provided in Section 69-2-301.
565          [(33)] (32) The Traffic Noise Abatement Program created in Section 72-6-112.
566          [(34)] (33) The Judicial Council for compensation for special prosecutors, as provided
567     in Section 77-10a-19.
568          [(35)] (34) A state rehabilitative employment program, as provided in Section
569     78A-6-210.
570          [(36)] (35) The Utah Geological Survey, as provided in Section 79-3-401.
571          [(37)] (36) The Bonneville Shoreline Trail Program created under Section 79-5-503.
572          [(38)] (37) Adoption document access as provided in Sections 78B-6-141, 78B-6-144,
573     and 78B-6-144.5.
574          [(39)] (38) Indigent defense as provided in Title 78B, Chapter 22, Part 4, Utah Indigent
575     Defense Commission.
576          [(40)] (39) The program established by the Division of Facilities Construction and
577     Management under Section 63A-5b-703 under which state agencies receive an appropriation
578     and pay lease payments for the use and occupancy of buildings owned by the Division of
579     Facilities Construction and Management.
580          Section 6. Section 63J-1-901 is enacted to read:
Part 9. Government Performance Reporting and Efficiency Process

582          63J-1-901. Title.
583          This part is known as "Government Performance Reporting and Efficiency Process."

584          Section 7. Section 63J-1-902 is enacted to read:
585          63J-1-902. Definitions.
586          As used in this part:
587          (1) "Appropriated entity" means any entity that receives state funds.
588          (2) "Funding item" means an increase to an agency's state funding that:
589          (a) is $10,000 or more; and
590          (b) results from action during a legislative session.
591          (3) "Performance measure" means a program objective, effectiveness measure,
592     program size indicator, or other related measure.
593          (4) "Product or service" means an appropriated entity's final output or outcome.
594          (5) "Government process" means a set of functions and procedures by which an
595     appropriated entity creates a product or service.
596          Section 8. Section 63J-1-903 is enacted to read:
597          63J-1-903. Performance measure and funding item reporting.
598          (1) The Governor's Office of Management and Budget and the Office of the Legislative
599     Fiscal Analyst may develop an information system to collect, track, and publish agency
600     performance measures.
601          (2) Each executive department agency shall:
602          (a) in consultation with the Governor's Office of Management and Budget and the
603     Office of the Legislative Fiscal Analyst, develop performance measures to include in an
604     appropriations act for each fiscal year; and
605          (b) on or before October 1 of each calendar year, provide to the Governor's Office of
606     Management and Budget and the Office of the Legislative Fiscal Analyst:
607          (i) any recommendations for legislative changes for the next fiscal year to the agency's
608     previously adopted performance measures; and
609          (ii) a report of the final status of the agency's performance measures included in the
610     appropriations act for the fiscal year ending the previous June 30.
611          (3) Each judicial department agency shall:
612          (a) develop performance measures to include in an appropriations act for each fiscal
613     year; and
614          (b) annually submit to the Office of the Legislative Fiscal Analyst a report that

615     contains:
616          (i) any recommendations for legislative changes for the next fiscal year to the agency's
617     previously adopted performance measures; and
618          (ii) the final status of the agency's performance measures included in the appropriations
619     act for the fiscal year ending the previous June 30.
620          (4) For each funding item, the executive department agency shall provide to the
621     Governor's Office of Management and Budget and the Office of the Legislative Fiscal Analyst:
622          (a) within 60 days after the day on which the Legislature adjourns a legislative session
623     sine die:
624          (i) one or more proposed performance measures developed in consultation with the
625     Governor's Office of Management and Budget and the Office of the Legislative Fiscal Analyst;
626     and
627          (ii) a target for each performance measure described in Subsection (4)(a)(i); and
628          (b) on or before August 15 of each year after the close of the fiscal year in which the
629     funding item was first funded, a report that includes:
630          (i) the status of each performance measure relative to the measure's target as described
631     in Subsection (4)(a);
632          (ii) the actual amount the agency spent, if any, on the funding item; and
633          (iii) (A) the month and year in which the agency implemented the program or project
634     associated with the funding item; or
635          (B) if the program or project associated with the funding item is not fully implemented,
636     the month and year in which the agency anticipates fully implementing the program or project
637     associated with the funding item.
638          (5) The Office of the Legislative Fiscal Analyst shall report the relevant performance
639     measure information described in this section to the Executive Appropriations Committee and
640     the appropriations subcommittees, as appropriate.
641          Section 9. Section 63J-1-904 is enacted to read:
642          63J-1-904. Efficiency improvement process.
643          (1) By May 1, 2022, the Governor's Office of Management and Budget and the Office
644     of the Legislative Fiscal Analyst shall jointly establish a process that identifies and prioritizes
645     government processes to target for efficiency improvements.

646          (2) The Governor's Office of Management and Budget and the Office of the Legislative
647     Fiscal Analyst shall ensure that the efficiency improvement process described in Subsection (1)
648     addresses the following:
649          (a) the roles of the Governor's Office of Management and Budget and the Office of the
650     Legislative Fiscal Analyst throughout the efficiency improvement process;
651          (b) how to collaborate with an appropriated entity in the development of the
652     appropriated entity's performance measures under Section 63J-1-903;
653          (c) how to evaluate the results of an appropriated entity's performance measures,
654     including identifying which performance measures that an appropriated entity may want to
655     retain, modify, or discontinue;
656          (d) the process by which an appropriated entity's government process is selected for an
657     efficiency evaluation;
658          (e) the criteria and methodology used for an efficiency evaluation;
659          (f) whether to provide any rewards or incentives for an appropriated entity to
660     implement recommendations from an efficiency evaluation;
661          (g) whether to create a formal or informal committee that advises the efficiency
662     improvement process; and
663          (h) the process by which the Governor's Office of Management and Budget and the
664     Office of the Legislative Fiscal Analyst notify the Office of the Legislative Auditor General
665     when an efficiency evaluation is completed.
666          (3) (a) The Office of the Legislative Auditor General shall independently review the
667     results of each efficiency evaluation conducted under this section.
668          (b) If, based on the review described in Subsection (3)(a), the Office of the Legislative
669     Auditor General determines further review is necessary, the Office of the Legislative Auditor
670     General shall:
671          (i) conduct a risk assessment; and
672          (ii) provide the results of the risk assessment to the Audit Subcommittee created in
673     Section 36-12-8.
674          (4) Beginning in 2021 and each calendar year thereafter, the Governor's Office of
675     Management and Budget and the Office of the Legislative Fiscal Analyst shall, before
676     December 31, report to the governor and the Legislative Management Committee, respectively,

677     regarding the status of the efficiency improvement process and recommended changes, if any.
678          Section 10. Repealer.
679          This bill repeals:
680          Section 36-24-101, Review of new programs and agencies.