This document includes Senate 3rd Reading Floor Amendments incorporated into the bill on Wed, Feb 16, 2022 at 11:16 AM by lpoole.
Senator Michael K. McKell proposes the following substitute bill:


1     
COUNTY GOVERNANCE AMENDMENTS

2     
2022 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Michael K. McKell

5     
House Sponsor: Phil Lyman

6     

7     LONG TITLE
8     General Description:
9          This bill modifies provisions related to a county's fiscal procedures.
10     Highlighted Provisions:
11          This bill:
12          ▸     defines terms, including the term "finance officer";
13          ▸     modifies the duties of a county auditor, a county finance officer, and a county
14     legislative body related to the provision of accounting services in a county;
15          ▸     modifies the authority of a county legislative body and a county executive to receive
16     financial information related to a county; and
17          ▸     makes technical changes.
18     Money Appropriated in this Bill:
19          None
20     Other Special Clauses:
21          This bill provides revisor instructions.
22     Utah Code Sections Affected:
23     AMENDS:
24          10-3c-203, as last amended by Laws of Utah 2019, Chapter 24
25          17-19a-101, as enacted by Laws of Utah 2012, Chapter 17
26          17-19a-102, as enacted by Laws of Utah 2012, Chapter 17
27          17-19a-205, as enacted by Laws of Utah 2012, Chapter 17
28          17-36-3, as last amended by Laws of Utah 2014, Chapters 176, 189, 253 and last
29     amended by Coordination Clause, Laws of Utah 2014, Chapter 253
30          17-36-4, as last amended by Laws of Utah 2019, Chapter 136
31          17-36-8, as last amended by Laws of Utah 2014, Chapter 176
32          17-36-10, as last amended by Laws of Utah 2012, Chapter 17
33          17-36-11, as last amended by Laws of Utah 2012, Chapter 17
34          17-36-15, as last amended by Laws of Utah 2012, Chapter 17
35          17-36-20, as last amended by Laws of Utah 2012, Chapter 17
36          17-36-22, as last amended by Laws of Utah 2009, Chapter 186
37          17-36-23, as enacted by Laws of Utah 1975, Chapter 22
38          17-36-32, as last amended by Laws of Utah 2012, Chapter 17
39          17-36-36, as last amended by Laws of Utah 2014, Chapter 176
40          17-36-37, as last amended by Laws of Utah 2014, Chapter 176
41          17-53-212, as last amended by Laws of Utah 2012, Chapter 17
42          17-53-303, as last amended by Laws of Utah 2012, Chapter 17
43          20A-7-101, as last amended by Laws of Utah 2021, Chapter 80
44     REPEALS:
45          17-19a-203, as last amended by Laws of Utah 2018, Chapter 68
46     

47     Be it enacted by the Legislature of the state of Utah:
48          Section 1. Section 10-3c-203 is amended to read:
49          10-3c-203. Administrative and operational services -- Staff provided by county or
50     municipal services district -- Recording of open meetings.
51          (1) (a) This section applies only to a metro township in which:
52          (i) the electors at an election under Section 10-2a-404 chose a metro township that is
53     included in a municipal services district and has limited municipal powers; or
54          (ii) the metro township is subsequently annexed into a municipal services district.
55          (b) This section does not apply to a metro township described in Subsection (7)(a) if
56     the municipal services district is dissolved.
57          (2) (a) Any of the following officials elected or appointed, or persons employed by, the
58     county in which a metro township is located may, for the purposes of interpreting and
59     complying with applicable law, fulfill the responsibilities and hold the following metro
60     township offices or positions if the county official and the metro township agree:
61          (i) the county treasurer may fulfill the duties and hold the powers of treasurer for the
62     metro township;
63          (ii) the county clerk may fulfill the duties and hold the powers of recorder and clerk for
64     the metro township;
65          (iii) the county surveyor may fulfill, on behalf of the metro township, all surveyor
66     duties imposed by law;
67          (iv) the county engineer may fulfill the duties and hold the powers of engineer for the
68     metro township; and
69          (v) subject to Subsection (2)(b), the county auditor may fulfill the duties and hold the
70     powers of auditor for the metro township.
71          (b) (i) The county auditor may fulfill the duties and hold the powers of auditor for the
72     metro township to the extent that the county auditor's powers and duties are described in and
73     delegated to the county auditor in accordance with Title 17, Chapter 19a, County Auditor, and
74     a municipal auditor's powers and duties described in this title are the same.
75          (ii) Notwithstanding Subsection (2)(b), in a metro township, services described in
76     Sections [17-19a-203,] 17-19a-204[,] and 17-19a-205, and services other than those described
77     in Subsection (2)(b)(i) that are provided by a municipal auditor in accordance with this title that
78     are required by law, may be performed by county staff other than the county auditor.
79          (3) (a) Nothing in Subsection (2) may be construed to relieve an official described in
80     Subsections (2)(a)(i) through (v) of a duty to either the county or, if the official and the metro
81     township agree as provided in Subsection (2)(a), the metro township or a duty to fulfill that
82     official's position as required by law.
83          (b) Notwithstanding Subsection (3)(a), an official or the official's deputy or other
84     person described in Subsections (2)(a)(i) through (v):
85          (i) is elected, appointed, or otherwise employed, in accordance with the provisions of
86     Title 17, Counties, as applicable to that official's or person's county office;
87          (ii) is paid a salary and benefits and subject to employment discipline in accordance
88     with the provisions of Title 17, Counties, as applicable to that official's or person's county
89     office;
90          (iii) is not subject to:
91          (A) Chapter 3, Part 11, Personnel Rules and Benefits; or
92          (B) Chapter 3, Part 13, Municipal Officers' and Employees' Ethics Act; and
93          (iv) is not required to provide a bond for the applicable municipal office if a bond for
94     the office is required by this title.
95          (4) The district attorney of the county in which a metro township is located may
96     provide legal counsel to the metro township if the county and the metro township agree.
97          (5) The metro township may establish a planning commission in accordance with
98     Section 10-9a-301 and an appeal authority in accordance with Section 10-9a-701.
99          (6) A municipal services district established in accordance with Title 17B, Chapter 2a,
100     Part 11, Municipal Services District Act, and of which the metro township is a part, may
101     provide staff to the metro township planning commission and appeal authority.
102          (7) Notwithstanding Title 52, Chapter 4, Open and Public Meetings Act, and Section
103     10-6-137, if the county clerk and the metro township agree to the county clerk providing
104     recorder and clerk services to the metro township as provided in Subsection
105     10-3c-203(1)(a)(ii):
106          (a) the county clerk may choose to not attend an open meeting of the metro township
107     council; and
108          (b) if the county clerk does not attend an open meeting of the metro township council,
109     the county clerk shall ensure that the chair of the metro township council or a designee of the
110     county clerk, in accordance with Section 52-4-203, makes a recording of the meeting and
111     prepares written minutes of the meeting.
112          Section 2. Section 17-19a-101 is amended to read:
113          17-19a-101. Title and scope.
114          (1) This chapter is known as "County Auditor."
115          [(2) (a) This chapter applies to a county of the first class.]
116          [(b) (i) On or before December 31, 2014, a county of the second, third, fourth, fifth, or
117     sixth class is not subject to the provisions of this chapter; and]
118          [(ii) on or after January 1, 2015, a county of the second, third, fourth, fifth, or sixth
119     class is subject to the provisions of this chapter.]
120          (2) This chapter applies to each county in the state.
121          Section 3. Section 17-19a-102 is amended to read:
122          17-19a-102. Definitions.
123          As used in this chapter:
124          (1) "Account" or "accounting" means:
125          (a) the systematic recording, classification, or summarizing of a financial transaction or
126     event; and
127          (b) the interpretation or presentation of the result of an action described in Subsection
128     (1)(a).
129          (2) Ŝ→ (a) ←Ŝ "Accounting services" means the creation, modification, or deletion of
129a     transactions
130     and records in a financial accounting system, including the preparation of a county's annual
131     financial report.
131a     Ŝ→      (b) "Accounting services" does not include the creation of a purchase order. ←Ŝ
132          [(2)] (3) "Audit" or "auditing" means an examination that is a formal analysis of a
133     county account or county financial record:
134          (a) to verify accuracy, completeness, or compliance with an internal control;
135          (b) to give a fair presentation of a county's financial status; and
136          (c) that conforms to the uniform classification of accounts established by the state
137     auditor.
138          [(3)] (4) "Book" means a financial record of the county, regardless of a record's format.
139          [(4)] (5) (a) "Budget" or "budgeting" means [a process or activity conducted by the
140     budget officer related to] the preparation or presentation of a proposed or tentative budget as
141     provided in Chapter 36, Uniform Fiscal Procedures Act for Counties.
142          (b) "Budget" or "budgeting" includes:
143          (i) a revenue projection;
144          (ii) a budget request compilation; or
145          (iii) the performance of an activity described in Subsection [(4)] (5)(b)(i) or (ii).
146          [(5) "Budget officer" means a person described in Section 17-19a-203.]
147          (6) (a) "Claim" means under the color of law:
148          (i) a demand presented for money or damages; or
149          (ii) a cause of action presented for money or damages.
150          (b) "Claim" does not mean a routine, uncontested, or regular payment, including a bill,
151     purchase, or payroll.
152          (7) "Performance audit" means a review and audit as described in Subsection
153     17-19a-206(3) of a county program, county operation, county management system, or county
154     agency to:
155          (a) review procedures, activities, or policies; and
156          (b) determine whether the county is achieving the best levels of economy, efficiency,
157     effectiveness, and compliance.
158          Section 4. Section 17-19a-205 is amended to read:
159          17-19a-205. Accounting services.
160          (1) Except as provided in [Subsection (2)] Subsections (2) and Ŝ→ [(4)] (3) ←Ŝ , the county
160a     auditor
161     shall provide accounting services for the county [as established by ordinance].
162          (2) [The] For a county operating under the county executive-council form of
163     government as described in Section 17-52a-203, the county [legislative body] council may, by
164     ordinance, delegate [an accounting service] accounting services provided for or executed on
165     behalf of the entire county:
166          (a) to the county executive; or
167          (b) to an office's or department's officer or director.
168          (3) For a county operating under the council-manager form of county government as
169     described in Section 17-52a-204, if the county auditor provides preapproval Ŝ→ or postpayment
169a     review ←Ŝ for all payments by
170     the county, the county council may by ordinance passed on or before December 31, 2021,
171     delegate accounting services provided for or executed on behalf of the entire county:
172          (a) to the county manager; or
173          (b) to an office's or department's officer or director.
174          [(3)] (4) If a [county legislative body delegates an accounting service] county council
175     delegates the provision of accounting services in accordance with [Subsection (2), the
176     legislative body shall make the delegation] Subsection (2) or (3):
177          (a) the county council shall make the delegation in accordance with good management
178     practice to foster effectiveness, efficiency, and the adequate protection of a county asset; [and]
179          (b) the county council shall make the delegation by considering appropriate checks and
180     balances within county government[.]; and
181          (c) the entity that is selected to provide accounting services shall prepare the tentative
182     budget as provided in Chapter 36, Uniform Fiscal Procedures Act for Counties.
183          Section 5. Section 17-36-3 is amended to read:
184          17-36-3. Definitions.
185          As used in this chapter:
186          (1) "Accrual basis of accounting" means a method where revenues are recorded when
187     earned and expenditures recorded when they become liabilities notwithstanding that the receipt
188     of the revenue or payment of the expenditure may take place in another accounting period.
189          (2) "Appropriation" means an allocation of money for a specific purpose.
190          (3) (a) "Budget" means a plan for financial operations for a fiscal period, embodying
191     estimates for proposed expenditures for given purposes and the means of financing the
192     expenditures.
193          (b) "Budget" may refer to the budget of a fund for which a budget is required by law, or
194     collectively to the budgets for all those funds.
195          (4) "Budgetary fund" means a fund for which a budget is required, such as those
196     described in Section 17-36-8.
197          [(5) "Budget officer" means a person described in Section 17-19a-203.]
198          [(6)] (5) "Budget period" means the fiscal period for which a budget is prepared.
199          [(7)] (6) "Check" means an order in a specific amount drawn upon the depositary by
200     any authorized officer in accordance with Section 17-19a-301, or 17-24-1.
201          [(8)] (7) "County general fund" means the general fund used by a county.
202          [(9)] (8) "Countywide service" means a service provided in both incorporated and
203     unincorporated areas of a county.
204          [(10)] (9) "Current period" means the fiscal period in which a budget is prepared and
205     adopted.
206          [(11)] (10) "Department" means any functional unit within a fund which carries on a
207     specific activity.
208          [(12)] (11) "Encumbrance system" means a method of budgetary control where part of
209     an appropriation is reserved to cover a specific expenditure by charging obligations, such as
210     purchase orders, contracts, or salary commitments to an appropriation account. An expenditure
211     ceases to be an encumbrance when paid or when the actual liability is entered in the books of
212     account.
213          [(13)] (12) "Estimated revenue" means any revenue estimated to be received during the
214     budget period in any fund for which a budget is prepared.
215          (13) "Finance officer" means:
216          (a) the county auditor or the person selected to provide accounting services for the
217     county in accordance with Section 17-19a-205; or
218          (b) notwithstanding Subsection (13)(a), for the purposes of preparing a tentative budget
219     in a county operating under a county executive-council form of county government, the county
220     executive.
221          (14) "Fiscal period" means the annual or biennial period for recording county fiscal
222     operations.
223          (15) "Fund" means an independent fiscal and accounting entity comprised of a sum of
224     money or other resources segregated for a specific purpose or objective.
225          (16) "Fund balance" means the excess of the assets over liabilities, reserves, and
226     contributions, as reflected by its books of account.
227          (17) "Fund deficit" means the excess of liabilities, reserves, and contributions over its
228     assets, as reflected by its books of account.
229          (18) "General fund" is as defined by the Governmental Accounting Standards Board as
230     reflected in the Uniform Accounting Manual for All Local Governments prepared by the Office
231     of the Utah State Auditor.
232          (19) "Interfund loan" means a loan of cash from one fund to another, subject to future
233     repayment.
234          (20) "Last completed fiscal period" means the fiscal period next preceding the current
235     period.
236          (21) "Modified accrual basis of accounting" means a method under which expenditures
237     other than accrued interest on general long-term debt are recorded at the time liabilities are
238     incurred and revenues are recorded when they become measurable and available to finance
239     expenditures of the current period.
240          (22) "Municipal capital project" means the acquisition, construction, or improvement
241     of capital assets that facilitate providing municipal service.
242          (23) "Municipal service" means a service not provided on a countywide basis and not
243     accounted for in an enterprise fund, and includes police patrol, fire protection, culinary or
244     irrigation water retail service, water conservation, local parks, sewers, sewage treatment and
245     disposal, cemeteries, garbage and refuse collection, street lighting, airports, planning and
246     zoning, local streets and roads, curb, gutter, and sidewalk maintenance, and ambulance service.
247          (24) "Retained earnings" means that part of the net earnings retained by an enterprise
248     or internal service fund which is not segregated or reserved for any specific purpose.
249          (25) "Special fund" means any fund other than the county general fund, such as those
250     described in Section 17-36-6.
251          (26) "Unappropriated surplus" means that part of a fund which is not appropriated for
252     an ensuing budget period.
253          (27) "Warrant" means an order in a specific amount drawn upon the treasurer by the
254     auditor.
255          Section 6. Section 17-36-4 is amended to read:
256          17-36-4. State auditor -- Duties.
257          (1) The state auditor shall:
258          (a) prescribe a uniform system of fiscal procedures for the several counties;
259          (b) conduct a constant review and modification of such procedures to improve them;
260          (c) prepare and supply each county [budget] finance officer with suitable budget forms;
261     and
262          (d) prepare instructional materials, conduct training programs, and render other
263     services deemed necessary to assist counties in implementing the uniform system.
264          (2) The uniform system of procedure may include reasonable exceptions and
265     modifications applicable to counties with a population of 25,000 or less, such population to be
266     determined by the Utah Population Committee. Counties may expand the uniform system to
267     serve better their needs. Deviations from or alterations to the basic prescribed classification
268     system for the identity of funds and accounts should not be made.
269          Section 7. Section 17-36-8 is amended to read:
270          17-36-8. Preparation of budgets.
271          The [budget] finance officer of each county shall prepare each budget period, [on
272     forms] in a format provided pursuant to Section 17-36-4, a tentative budget for each of the
273     following funds which are included in [its] the county's system of accounts:
274          (1) county general fund;
275          (2) special revenue funds;
276          (3) debt service funds;
277          (4) capital project funds; and
278          (5) any other fund or funds for which a budget is required by the uniform system of
279     budgeting, accounting, and reporting.
280          Section 8. Section 17-36-10 is amended to read:
281          17-36-10. Preparation of tentative budget.
282          (1) (a) On or before the first day of the next to last month of every fiscal period, the
283     [budget] finance officer shall prepare for the next budget period and file with the governing
284     body a tentative budget for each fund for which a budget is required.
285          (b) During the preparation of a tentative budget described in Subsection (1)(a), the
286     following may participate in the creation of the tentative budget:
287          (i) for a county commission or expanded county commission form of county
288     government, the county commission;
289          (ii) for a county executive-council form of county government, the county council and
290     the county executive; and
291          (iii) for a council-manager form of county government, the county council and the
292     county manager.
293          (2) (a) A department for which county funds are appropriated shall file with the
294     [budget] finance officer not less than three months before the commencement of each fiscal
295     year on forms furnished by the [budget] finance officer a detailed estimate and statement of the
296     revenue and necessary expenditures of the department for the next budget year.
297          (b) The estimate and statement described in Subsection (2)(a) shall set forth:
298          (i) the number of persons to be regularly employed;
299          (ii) the kinds of service the department will perform;
300          (iii) the salaries and wages the department expects to pay;
301          (iv) the kind of work the department will perform and the improvements the
302     department expects to make; and
303          (v) the estimated cost of the service, work, and improvements.
304          (c) The finance officer shall make the estimate and statement described in Subsection
305     (2)(a) available to:
306          (i) for a county commission or expanded county commission form of county
307     government, the county commission;
308          (ii) for a county executive-council form of county government, the county council and
309     the county executive; and
310          (iii) for a council-manager form of county government, the county council and the
311     county manager.
312          [(c)] (d) The statement shall also record performance data expressed in work units, unit
313     costs, man hours, and man years sufficient in detail, content, and scope to permit the [budget]
314     finance officer to prepare and process the county budget.
315          (3) In the preparation of the budget, the [budget] finance officer and all other county
316     officers are subject to Sections 17-36-1 through 17-36-44 and to the uniform system of
317     budgeting, accounting, and reporting established therein.
318          (4) In the tentative budget, the [budget] finance officer shall set forth in tabular form:
319          (a) actual revenues and expenditures in the last completed fiscal period;
320          (b) estimated total revenues and expenditures for the current fiscal period;
321          (c) the estimated available revenues and expenditures for the ensuing budget period
322     computed by determining:
323          (i) the estimated expenditure for each fund after review of each departmental budget
324     request; and
325          (ii) [(A)] the total revenue requirements of the fund[;], including:
326          [(B)] (A) the part of the total revenue that will be derived from revenue sources other
327     than property tax; and
328          [(C)] (B) the part of the total revenue that [shall] will be derived from property taxes;
329     and
330          (d) if required by the governing body, actual performance experience to the extent
331     available in work units, unit costs, man hours, and man years for each budgeted fund that
332     includes an appropriation for salaries or wages for the last completed fiscal period and the first
333     eight months of the current fiscal period if the county is on an annual fiscal period, or the first
334     20 months of the current fiscal period if the county is on a biennial fiscal period, together with
335     the total estimated performance data of like character for the current fiscal period and for the
336     ensuing budget period.
337          (5) The [budget] finance officer may recommend modification of any departmental
338     budget request under Subsection (4)(c)(i) before [it] the budget request is filed with the
339     governing body, if each department head has been given an opportunity to be heard concerning
340     the modification.
341          (6) (a) A tentative budget shall contain the estimates of expenditures submitted by any
342     department together with specific work programs and other supportive data as the governing
343     body requests.
344          (b) The [budget] finance officer shall include with the tentative budget [by] a
345     supplementary estimate of all capital projects or planned capital projects within the budget
346     period and within the next three succeeding years.
347          (7) (a) A [budget] finance officer that submits a tentative budget in a county with a
348     population [in excess] of more than 25,000 [determined in accordance with Section 17-36-4]
349     shall include with the tentative budget a budget message in explanation of the budget.
350          (b) The budget message shall [contain]:
351          (i) include an outline of the proposed financial policies of the county for the budget
352     period [and];
353          (ii) describe the important features of the budgetary plan[. It shall also];
354          (iii) state the reasons for changes from the previous fiscal period in appropriation and
355     revenue items; and
356          (iv) explain any major changes in financial policy.
357          (c) A [budget message for counties] finance officer of a county with a population of
358     less than 25,000 [is recommended but not incumbent upon the budget officer] may prepare a
359     budget message in explanation of the tentative budget.
360          (8) (a) The governing body shall review, consider, and adopt a tentative budget in a
361     regular or special meeting called for that purpose.
362          (b) (i) Subject to Subsection (8)(b)(ii), the governing body may thereafter amend or
363     revise the tentative budget prior to public hearings on the tentative budget.
364          (ii) A governing body may not:
365          (A) reduce below the required minimum an appropriation required for debt retirement
366     and interest; or
367          (B) reduce, in accordance with Section 17-36-17, an existing deficit.
368          Section 9. Section 17-36-11 is amended to read:
369          17-36-11. Tentative budget -- Public record prior to adoption.
370          [The] A tentative budget and all supportive schedules and data shall be a public record
371     available for inspection during business hours at the office of the [budget] finance officer for at
372     least 10 days [prior to] before the public hearing on the adoption of a final budget.
373          Section 10. Section 17-36-15 is amended to read:
374          17-36-15. Adoption of budget -- Immunity.
375          (1) (a) On or before the last day of each fiscal period, the governing body by resolution
376     shall adopt the final budget.
377          (b) A final budget adopted in accordance with Subsection (1)(a) is, unless amended, in
378     effect for the next fiscal period.
379          (c) The [budget] finance officer shall:
380          (i) certify a copy of the final budget, and of any subsequent budget amendment; and
381          (ii) file a copy with the state auditor not later than 30 days after the day on which the
382     governing body adopts the budget.
383          (d) The [budget] finance officer shall file a certified copy of the budget in the office of
384     the [budget] finance officer for inspection by the public during business hours.
385          (2) (a) Except as provided in Subsection (2)(b), a county officer or county employee
386     may not file a legal action in state or federal court against the county, a department, or a county
387     officer for any matter related to the following:
388          (i) the adoption of a county budget;
389          (ii) a county appropriation;
390          (iii) a county personnel allocation; or
391          (iv) a fund related to the county budget, a county appropriation, or a county personnel
392     allocation.
393          (b) A county or district attorney may enforce a procedural requirement that governs the
394     adoption or approval of a budget in accordance with this chapter.
395          Section 11. Section 17-36-20 is amended to read:
396          17-36-20. Purchases or encumbrances by purchasing agent.
397          (1) A person may not make a purchase or incur an encumbrance on behalf of a county
398     unless that person acts in accordance with an order by, or approval of, the person duly
399     authorized to act as purchasing agent for the county, except encumbrances or expenditures
400     directly investigated and specifically approved by the executive or legislative body.
401          (2) Unless otherwise provided by the governing body, the [budget] finance officer or
402     the [budget] finance officer's agents shall serve as a purchasing agent.
403          Section 12. Section 17-36-22 is amended to read:
404          17-36-22. Transfer of unexpended appropriation balance by department.
405          (1) After review by the [budget] finance officer and in accordance with budgetary and
406     fiscal policies or ordinances adopted by the county legislative body, any department may:
407          (a) transfer any unencumbered or unexpended appropriation balance or any part from
408     one expenditure account to another within the department during the budget year; or
409          (b) incur an excess expenditure of one or more line items.
410          (2) A transfer or expenditure under Subsection (1) may not occur if the transfer or
411     expenditure would cause the total of all excess expenditures or encumbrances to exceed the
412     total unused appropriation within the department at the close of the budget period.
413          Section 13. Section 17-36-23 is amended to read:
414          17-36-23. Transfer of unexpended appropriation balance by governing body.
415          At the request of the [budget] finance officer or upon [its] the governing body's own
416     motion, the governing body may by resolution transfer any unencumbered or unexpended
417     appropriation balance or part thereof from one department in a fund to another department
418     within the same fund[;], provided that no appropriation for debt retirement and interest,
419     reduction of deficit, or other appropriation required by law may be reduced below the required
420     minimum.
421          Section 14. Section 17-36-32 is amended to read:
422          17-36-32. Operating and capital budget -- Expenditures.
423          (1) (a) As used in this section, "operating and capital budget" means a plan of financial
424     operation for an enterprise or other special fund embodying estimates of operating and
425     nonoperating resources and expenses and other outlays for a fiscal period.
426          (b) Except as otherwise expressly provided, "budget" or "budgets" and the procedures
427     and controls relating to them in other sections of this act are not applicable to the operating and
428     capital budgets provided in this section.
429          (2) At or before the time that the governing body adopts budgets for the budgetary
430     funds specified in Section 17-36-8, the governing body shall adopt an operating and capital
431     budget for the next fiscal period for:
432          (a) each enterprise fund; and
433          (b) any other special nonbudgetary fund for which operating and capital budgets are
434     prescribed by the uniform system of budgeting, accounting, and reporting.
435          (3) (a) The governing body shall adopt and administer the operating and capital budget
436     in accordance with this Subsection (3).
437          (b) At or before the first day of the next to last month of each fiscal period, the
438     [budget] finance officer shall prepare for the next fiscal period on forms provided pursuant to
439     Section 17-36-4, and file with the governing body a tentative operating and capital budget for:
440          (i) each enterprise fund; and
441          (ii) any other special fund that requires an operating and capital budget.
442          (c) The tentative operating and capital budget shall be accompanied by a
443     supplementary estimate of all capital projects or planned capital projects:
444          (i) within the next fiscal period; and
445          (ii) within the fiscal period immediately following the fiscal period described in
446     Subsection (3)(c)(i).
447          (d) (i) Subject to Subsection (3)(d)(ii), the [budget] finance officer shall prepare all
448     estimates after review and consultation, if requested, with a department proposing a capital
449     project.
450          (ii) After complying with Subsection (3)(d)(i), the [budget] finance officer may revise
451     any departmental estimate before it is filed with the governing body.
452          (e) (i) Except as provided in Subsection (3)(e)(iv), if a governing body includes in a
453     tentative budget, or an amendment to a budget, allocations or transfers between a utility
454     enterprise fund and another fund that are not reasonable allocations of costs between the utility
455     enterprise fund and the other fund, the governing body shall:
456          (A) hold a public hearing;
457          (B) prepare a written notice of the date, time, place, and purpose of the hearing, in
458     accordance with Subsection (3)(e)(ii); and
459          (C) subject to Subsection (3)(e)(iii), mail the notice to each utility enterprise fund
460     customer at least seven days before the day of the hearing.
461          (ii) The purpose portion of the written notice described in Subsection (3)(e)(i)(B) shall
462     identify:
463          (A) the utility enterprise fund from which money is being transferred;
464          (B) the amount being transferred; and
465          (C) the fund to which the money is being transferred.
466          (iii) The governing body:
467          (A) may print the written notice required under Subsection (3)(e)(i) on the utility
468     enterprise fund customer's bill; and
469          (B) shall include the written notice required under Subsection (3)(e)(i) as a separate
470     notification mailed or transmitted with the utility enterprise fund customer's bill.
471          (iv) The notice and hearing requirements in this Subsection (3)(e) are not required for
472     an allocation or a transfer included in an original budget or in a subsequent budget amendment
473     previously approved by the governing body for the current fiscal year.
474          (f) (i) The governing body shall review the tentative operating and capital budget at any
475     regular or special meeting called for that purpose.
476          (ii) In accordance with Subsection (3)(f)(i), the governing body may make any changes
477     to the tentative operating and capital budget that the governing body considers advisable.
478          (iii) Before the close of the fiscal period, the governing body shall adopt an operating
479     and capital budget for the next fiscal period.
480          (g) (i) Upon final adoption by the governing body, the operating and capital budget
481     shall be in effect for the budget period subject to amendment.
482          (ii) The governing body shall:
483          (A) certify a copy of the operating and capital budget for each fund with the [budget]
484     finance officer; and
485          (B) make a copy available to the public during business hours in the offices of the
486     county auditor.
487          (iii) The governing body shall file a copy of the operating and capital budget with the
488     state auditor within 30 days after the day on which the operating and capital budget is adopted.
489          (iv) The governing body may during the budget period amend the operating and capital
490     budget of an enterprise or other special fund by resolution.
491          (v) A copy of the operating and capital budget as amended shall be filed with the state
492     auditor.
493          (4) Any expenditure from an operating and capital budget shall conform to the
494     requirements for budgets specified by Sections 17-36-20, 17-36-22, 17-36-23, and 17-36-24.
495          Section 15. Section 17-36-36 is amended to read:
496          17-36-36. Financial statements.
497          (1) The [budget] finance officer shall present to the governing body the following
498     financial statements prepared in the manner prescribed by the uniform system of budgeting,
499     accounting, and reporting:
500          (a) [A] a summary of cash receipts and disbursements for each fund or group of funds
501     and for each department within each fund reportable at the end of each month showing the cash
502     and invested balance at the beginning of the period, the total receipts collected during the
503     period, the total disbursements made during the period and the cash and invested balance at the
504     end of the period[.];
505          (b) [Not] not less than once each quarter or more often if requested by the governing
506     body, a condensed statement of revenues and expenditures and comparison with the budget of
507     the county general fund and the allotments thereof, as reflected by the books of account[.];
508          (c) [A] a comparative quarterly income and expense statement for each enterprise fund
509     showing a comparative analysis between the operations of such fund for the current fiscal
510     reporting period and the same period in the previous year[.];
511          (d) [A] a condensed statement of the operating and capital budget of each enterprise
512     fund showing revenues and expenses and balances compared with the budget for any period
513     requested by the governing body or required by the uniform system of budgeting, accounting
514     and reporting[.]; and
515          (e) [Any] any other statements of operations or reports on financial condition as the
516     governing body or the uniform system of budgeting, accounting, and reporting may require.
517          (2) All financial statements made pursuant to this section shall be open for public
518     inspection during regular business hours.
519          Section 16. Section 17-36-37 is amended to read:
520          17-36-37. Finance officer -- Annual financial statement -- Contents.
521          (1) The [budget] finance officer of each county, within 180 days after the close of each
522     fiscal period, or, for a county that has adopted a fiscal period that is a biennial period, within
523     180 days after both the midpoint and the close of the fiscal period, except as provided by
524     Section 17-36-38, shall prepare and make available to the governing body an annual financial
525     report [which] that shall contain:
526          (a) a statement of revenues and expenditures and a comparison with the budget of the
527     county general fund, similar statements of all other funds for which budgets are required, and
528     statements of revenues and expenditures or of income and expense[, as the case may be, of] for
529     all other operating funds of the county;
530          (b) a balance sheet of each fund and a combined balance sheet of all funds as of:
531          (i) for a county that has adopted a fiscal period that is a biennial period, the midpoint
532     and the close of the fiscal period; and
533          (ii) for each other county, the close of the fiscal period; or
534          (c) any other reports the governing body may require, including work performance
535     data, tax levies, taxable values, details of bonded indebtedness, and historical facts of interest
536     to the governing body and the public.
537          (2) Copies of the annual report shall be furnished to the state auditor and made a matter
538     of public record in the office of the [budget] finance officer.
539          Section 17. Section 17-53-212 is amended to read:
540          17-53-212. Examination and audit of accounts.
541          (1) As used in this section, "finance officer" means the same as that term is defined in
542     Section 17-36-3.
543          [(1)] (2) A county legislative body may examine and audit the accounts of all officers
544     having the care, management, collection, or disbursement of money belonging to the county or
545     appropriated by law or otherwise for its use and benefit.
546          (3) (a) Subject to Subsection (3)(b), the finance officer of the county shall reply to each
547     request for financial information by a county legislative body or any individual member of a
548     county legislative body within five business days after the day on which the request is received.
549          (b) If a request for financial information requires an extended time period to research
550     and compile, the finance officer of the county shall provide written notice to the legislative
551     body that includes an explanation for the delay and the date when the information will be
552     provided to the legislative body.
553          (4) A county legislative body may hire professional staff to provide technical assistance
554     and analysis of all financial matters of the county.
555          [(2)] (5) Nothing in this section may be construed to affect a county auditor's authority
556     under Chapter 19a, County Auditor.
557          Section 18. Section 17-53-303 is amended to read:
558          17-53-303. Examination and audit of accounts.
559          (1) As used in this section, "finance officer" means the same as that term is defined in
560     Section 17-36-3.
561          [(1)] (2) The county executive may examine and audit the accounts of all officers
562     having the care, management, collection, or disbursement of money belonging to the county or
563     appropriated by law or otherwise for its use and benefit.
564          (3) (a) Subject to Subsection (3)(b), the finance officer of the county shall reply to each
565     request for financial information by a county executive within five business days after the day
566     on which the request is received.
567          (b) If a request for financial information requires an extended time period to research
568     and compile, the finance officer of the county shall provide written notice to the county
569     executive that includes an explanation for the delay and the date when the information will be
570     provided to the county executive.
571          [(2)] (4) Nothing in this section may be construed to affect a county auditor's authority
572     under Chapter 19a, County Auditor.
573          Section 19. Section 20A-7-101 is amended to read:
574          20A-7-101. Definitions.
575          As used in this chapter:
576          (1) "Budget officer" means:
577          (a) for a county, the person designated as [budget officer in Section 17-19a-203]
578     finance officer as defined in Section 17-36-3;
579          (b) for a city, the person designated as budget officer in Subsection 10-6-106(4);
580          (c) for a town, the town council; or
581          (d) for a metro township, the person described in Subsection (1)(a) for the county in
582     which the metro township is located.
583          (2) "Certified" means that the county clerk has acknowledged a signature as being the
584     signature of a registered voter.
585          (3) "Circulation" means the process of submitting an initiative or referendum petition
586     to legal voters for their signature.
587          (4) "Eligible voter" means a legal voter who resides in the jurisdiction of the county,
588     city, or town that is holding an election on a ballot proposition.
589          (5) "Final fiscal impact statement" means a financial statement prepared after voters
590     approve an initiative that contains the information required by Subsection 20A-7-202.5(2) or
591     20A-7-502.5(2).
592          (6) "Initial fiscal impact estimate" means:
593          (a) a financial statement prepared under Section 20A-7-202.5 after the filing of an
594     application for an initiative petition; or
595          (b) a financial and legal statement prepared under Section 20A-7-502.5 or 20A-7-602.5
596     for an initiative or referendum petition.
597          (7) "Initiative" means a new law proposed for adoption by the public as provided in
598     this chapter.
599          (8) "Initiative packet" means a copy of the initiative petition, a copy of the proposed
600     law, and the signature sheets, all of which have been bound together as a unit.
601          (9) (a) "Land use law" means a law of general applicability, enacted based on the
602     weighing of broad, competing policy considerations, that relates to the use of land, including
603     land use regulation, a general plan, a land use development code, an annexation ordinance, the
604     rezoning of a single property or multiple properties, or a comprehensive zoning ordinance or
605     resolution.
606          (b) "Land use law" does not include a land use decision, as defined in Section
607     10-9a-103 or 17-27a-103.
608          (10) "Legal signatures" means the number of signatures of legal voters that:
609          (a) meet the numerical requirements of this chapter; and
610          (b) have been obtained, certified, and verified as provided in this chapter.
611          (11) "Legal voter" means a person who:
612          (a) is registered to vote; or
613          (b) becomes registered to vote before the county clerk certifies the signatures on an
614     initiative or referendum petition.
615          (12) "Legally referable to voters" means:
616          (a) for a proposed local initiative, that the proposed local initiative is legally referable
617     to voters under Section 20A-7-502.7; or
618          (b) for a proposed local referendum, that the proposed local referendum is legally
619     referable to voters under Section 20A-7-602.7.
620          (13) "Local attorney" means the county attorney, city attorney, or town attorney in
621     whose jurisdiction a local initiative or referendum petition is circulated.
622          (14) "Local clerk" means the county clerk, city recorder, or town clerk in whose
623     jurisdiction a local initiative or referendum petition is circulated.
624          (15) (a) "Local law" includes:
625          (i) an ordinance;
626          (ii) a resolution;
627          (iii) a land use law;
628          (iv) a land use regulation, as defined in Section 10-9a-103; or
629          (v) other legislative action of a local legislative body.
630          (b) "Local law" does not include a land use decision, as defined in Section 10-9a-103.
631          (16) "Local legislative body" means the legislative body of a county, city, town, or
632     metro township.
633          (17) "Local obligation law" means a local law passed by the local legislative body
634     regarding a bond that was approved by a majority of qualified voters in an election.
635          (18) "Local tax law" means a law, passed by a political subdivision with an annual or
636     biannual calendar fiscal year, that increases a tax or imposes a new tax.
637          (19) "Measure" means a proposed constitutional amendment, an initiative, or
638     referendum.
639          (20) "Referendum" means a process by which a law passed by the Legislature or by a
640     local legislative body is submitted or referred to the voters for their approval or rejection.
641          (21) "Referendum packet" means a copy of the referendum petition, a copy of the law
642     being submitted or referred to the voters for their approval or rejection, and the signature
643     sheets, all of which have been bound together as a unit.
644          (22) (a) "Signature" means a holographic signature.
645          (b) "Signature" does not mean an electronic signature.
646          (23) "Signature sheets" means sheets in the form required by this chapter that are used
647     to collect signatures in support of an initiative or referendum.
648          (24) "Special local ballot proposition" means a local ballot proposition that is not a
649     standard local ballot proposition.
650          (25) "Sponsors" means the legal voters who support the initiative or referendum and
651     who sign the application for petition copies.
652          (26) (a) "Standard local ballot proposition" means a local ballot proposition for an
653     initiative or a referendum.
654          (b) "Standard local ballot proposition" does not include a property tax referendum
655     described in Section 20A-7-613.
656          (27) "Tax percentage difference" means the difference between the tax rate proposed
657     by an initiative or an initiative petition and the current tax rate.
658          (28) "Tax percentage increase" means a number calculated by dividing the tax
659     percentage difference by the current tax rate and rounding the result to the nearest thousandth.
660          (29) "Verified" means acknowledged by the person circulating the petition as required
661     in Sections 20A-7-205 and 20A-7-305.
662          Section 20. Repealer.
663          This bill repeals:
664          Section 17-19a-203, Budget officer.
665          Section 21. Revisor instructions.
666          The Legislature intends that the Office of Legislative Research and General Counsel, in
667     preparing the Utah Code database for publication, on May 4, 2022, replace the term "budget
668     officer" with "finance officer" in any new language added to the Utah Code in Title 17,
669     Counties, by legislation passed during the 2022 General Session.