Representative Jordan D. Teuscher proposes the following substitute bill:


1     
DEPARTMENT OF COMMERCE ELECTRONIC PAYMENT

2     
FEES

3     
2023 GENERAL SESSION

4     
STATE OF UTAH

5     
Chief Sponsor: Jordan D. Teuscher

6     
Senate Sponsor: Curtis S. Bramble

7     

8     LONG TITLE
9     General Description:
10          This bill amends provisions related to revenue collected by the Department of
11     Commerce.
12     Highlighted Provisions:
13          This bill:
14          ▸     allows the Department of Commerce (department) to collect a fee to defray the costs
15     of electronic payments;
16          ▸     creates the Commerce Electronic Payment Fee Restricted Account (restricted
17     account);
18          ▸     requires the department to deposit electronic payment fees into the restricted
19     account; and
20          ▸     provides that appropriations from the restricted account are nonlapsing.
21     Money Appropriated in this Bill:
22          This bill appropriates in fiscal year 2024:
23          ▸     to the Department of Commerce as an ongoing appropriation:
24               •     from the Commerce Service Account, ($800,000).
25               •     from the Commerce Electronic Payment Fee Restricted Account, $800,000.

26     Other Special Clauses:
27          None
28     Utah Code Sections Affected:
29     AMENDS:
30          13-1-2, as last amended by Laws of Utah 2022, Chapter 415
31          63J-1-602.1, as last amended by Laws of Utah 2022, Chapters 48, 191, 255, 335, 415,
32     and 451
33     ENACTS:
34          13-1-17, Utah Code Annotated 1953
35     

36     Be it enacted by the Legislature of the state of Utah:
37          Section 1. Section 13-1-2 is amended to read:
38          13-1-2. Creation and functions of department -- Divisions created -- Fees --
39     Commerce Service Account.
40          (1) (a) There is created the Department of Commerce.
41          (b) The department shall:
42          (i) execute and administer state laws regulating business activities and occupations
43     affecting the public interest; and
44          (ii) ensure that any training or certification required of a public official or public
45     employee, as those terms are defined in Section 63G-22-102, complies with Title 63G, Chapter
46     22, State Training and Certification Requirements, if the training or certification is required:
47          (A) under this title;
48          (B) by the department; or
49          (C) by an agency or division within the department.
50          (2) Within the department the following divisions are created:
51          (a) the Division of Professional Licensing;
52          (b) the Division of Real Estate;
53          (c) the Division of Securities;
54          (d) the Division of Public Utilities;
55          (e) the Division of Consumer Protection; and
56          (f) the Division of Corporations and Commercial Code.

57          (3) (a) Unless otherwise provided by statute, the department may adopt a schedule of
58     fees assessed for services provided by the department by following the procedures and
59     requirements of Section 63J-1-504.
60          (b) The department shall submit each fee established in this manner to the Legislature
61     for the Legislature's approval as part of the department's annual appropriations request.
62          (c) (i) There is created a restricted account within the General Fund known as the
63     "Commerce Service Account."
64          (ii) The restricted account created in Subsection (3)(c)(i) consists of fees collected by
65     each division and by the department.
66          (iii) The undesignated account balance may not exceed $1,000,000 at the end of each
67     fiscal year.
68          (iv) At the end of each fiscal year, the director of the Division of Finance shall transfer
69     into the General Fund any undesignated funds in the account that exceed the amount necessary
70     to maintain the undesignated account balance at $1,000,000.
71          (d) The department may not charge or collect a fee or expend money from the
72     restricted account without approval by the Legislature.
73          (4) (a) As used in this Subsection (4):
74          (i) "Business entity" means a sole proprietorship, partnership, limited partnership,
75     limited liability company, corporation, or other entity or association used to carry on a business
76     for profit.
77          (ii) "Fund" means the Single Sign-On Expendable Special Revenue Fund, created in
78     Subsection (4)(c).
79          (iii) "Renewal fee" means a fee that the Division of Corporations and Commercial
80     Code, established in Section 13-1a-1, is authorized or required to charge a business entity in
81     connection with the business entity's periodic renewal of the business entity's status with the
82     Division of Corporations and Commercial Code.
83          (iv) "Single sign-on fee" means a fee described in Subsection (4)(b) to pay for the
84     establishment and maintenance of the single sign-on business portal.
85          (v) "Single sign-on business portal" means the same as that term is defined in Section
86     63A-16-802.
87          (b) (i) The schedule of fees adopted by the department under Subsection (3) shall

88     include a single sign-on fee, not to exceed $5, as part of a renewal fee.
89          (ii) The department shall deposit all single sign-on fee revenue into the fund.
90          (c) (i) There is created the Single Sign-On Expendable Special Revenue Fund.
91          (ii) The fund consists of:
92          (A) money that the department collects from the single sign-on fee; and
93          (B) money that the Legislature appropriates to the fund.
94          (d) The department shall use the money in the fund to pay for costs:
95          (i) to design, create, operate, and maintain the single sign-on business portal; and
96          (ii) incurred by:
97          (A) the Department of Technology Services, created in Section 63A-16-103; or
98          (B) a third-party vendor working under a contract with the Department of Technology
99     Services.
100          (e) The department shall report on fund revenues and expenditures to the Public
101     Utilities, Energy, and Technology Interim Committee of the Legislature annually and at any
102     other time requested by the committee.
103          (5) (a) As used in this Subsection (5):
104          (i) "Costs of electronic payments" means:
105          (A) any charge, discount fee, or processing fee that a credit card company or processing
106     agent charges to process an electronic payment; or
107          (B) the costs associated with the purchase of equipment necessary for processing
108     electronic payments.
109          (ii) "Electronic payment" means any form of payment processed through electronic
110     means, including a credit card, debit card, or automatic clearinghouse transaction.
111          (iii) "Electronic payment fee" means the fee the department adopts in accordance with
112     this Subsection (5) to defray the costs of electronic payments.
113          (b) As part of the schedule of fees described in Subsection (3)(a), the department shall
114     establish an electronic payment fee.
115          (c) The department:
116          (i) may collect an electronic payment fee from each person who applies for or renews a
117     license or registration issued by the department or a division of the department; and
118          (ii) shall deposit into the Commerce Electronic Payment Fee Restricted Account

119     created in Section 13-1-17 each electronic payment fee the department collects.
120          (d) The electronic payment fee described in this Subsection (5) is not subject to
121     Subsection 63J-1-105(3) or (4).
122          (e) (i) If the department imposes an electronic payment fee, the department shall collect
123     the electronic payment fee from each person described in Subsection (5)(c)(i) regardless of
124     whether the person makes an electronic payment.
125          (ii) The department is not required to separately identify an electronic payment charged
126     to a person described in Subsection (5)(c)(i).
127          Section 2. Section 13-1-17 is enacted to read:
128          13-1-17. Commerce Electronic Payment Fee Restricted Account.
129          (1) As used in this section:
130          (a) "Account" means the Commerce Electronic Payment Fee Restricted Account
131     created in this section.
132          (b) "Costs of electronic payments" means the same as that term is defined in Section
133     13-1-2.
134          (c) "Department" means the Department of Commerce.
135          (d) "Electronic payment" means the same as that term is defined in Section 13-1-2.
136          (e) "Electronic payment fee" means the same as that term is defined in Section 13-1-2.
137          (2) There is created in the General Fund a restricted account known as the "Commerce
138     Electronic Payment Fee Restricted Account."
139          (3) The account consists of money that the department collects as an electronic
140     payment fee in accordance with Section 13-1-2.
141          (4) Upon appropriation, the department may use money in the account to cover the
142     costs of electronic payments.
143          (5) In accordance with Section 63J-1-602.1, appropriations made to the department
144     from the account are nonlapsing.
145          Section 3. Section 63J-1-602.1 is amended to read:
146          63J-1-602.1. List of nonlapsing appropriations from accounts and funds.
147          Appropriations made from the following accounts or funds are nonlapsing:
148          (1) The Utah Intracurricular Student Organization Support for Agricultural Education
149     and Leadership Restricted Account created in Section 4-42-102.

150          (2) The Native American Repatriation Restricted Account created in Section 9-9-407.
151          (3) The Martin Luther King, Jr. Civil Rights Support Restricted Account created in
152     Section 9-18-102.
153          (4) The National Professional Men's Soccer Team Support of Building Communities
154     Restricted Account created in Section 9-19-102.
155          (5) Funds collected for directing and administering the C-PACE district created in
156     Section 11-42a-106.
157          (6) Money received by the Utah Inland Port Authority, as provided in Section
158     11-58-105.
159          (7) The "Latino Community Support Restricted Account" created in Section 13-1-16.
160          (8) The Clean Air Support Restricted Account created in Section 19-1-109.
161          (9) The Division of Air Quality Oil, Gas, and Mining Restricted Account created in
162     Section 19-2a-106.
163          (10) The Division of Water Quality Oil, Gas, and Mining Restricted Account created in
164     Section 19-5-126.
165          (11) The "Support for State-Owned Shooting Ranges Restricted Account" created in
166     Section 23-14-13.5.
167          (12) Award money under the State Asset Forfeiture Grant Program, as provided under
168     Section 24-4-117.
169          (13) Funds collected from the program fund for local health department expenses
170     incurred in responding to a local health emergency under Section 26-1-38.
171          (14) The Children with Cancer Support Restricted Account created in Section
172     26-21a-304.
173          (15) State funds for matching federal funds in the Children's Health Insurance Program
174     as provided in Section 26-40-108.
175          (16) The Children with Heart Disease Support Restricted Account created in Section
176     26-58-102.
177          (17) The Technology Development Restricted Account created in Section 31A-3-104.
178          (18) The Criminal Background Check Restricted Account created in Section
179     31A-3-105.
180          (19) The Captive Insurance Restricted Account created in Section 31A-3-304, except

181     to the extent that Section 31A-3-304 makes the money received under that section free revenue.
182          (20) The Title Licensee Enforcement Restricted Account created in Section
183     31A-23a-415.
184          (21) The Health Insurance Actuarial Review Restricted Account created in Section
185     31A-30-115.
186          (22) The Insurance Fraud Investigation Restricted Account created in Section
187     31A-31-108.
188          (23) The Underage Drinking Prevention Media and Education Campaign Restricted
189     Account created in Section 32B-2-306.
190          (24) The Drinking While Pregnant Prevention Media and Education Campaign
191     Restricted Account created in Section 32B-2-308.
192          (25) The School Readiness Restricted Account created in Section 35A-15-203.
193          (26) Money received by the Utah State Office of Rehabilitation for the sale of certain
194     products or services, as provided in Section 35A-13-202.
195          (27) The Oil and Gas Administrative Penalties Account created in Section 40-6-11.
196          (28) The Oil and Gas Conservation Account created in Section 40-6-14.5.
197          (29) The Division of Oil, Gas, and Mining Restricted account created in Section
198     40-6-23.
199          (30) The Electronic Payment Fee Restricted Account created by Section 41-1a-121 to
200     the Motor Vehicle Division.
201          (31) The Motor Vehicle Enforcement Division Temporary Permit Restricted Account
202     created by Section 41-3-110 to the State Tax Commission.
203          (32) The Utah Law Enforcement Memorial Support Restricted Account created in
204     Section 53-1-120.
205          (33) The State Disaster Recovery Restricted Account to the Division of Emergency
206     Management, as provided in Section 53-2a-603.
207          (34) The Post Disaster Recovery and Mitigation Restricted Account created in Section
208     53-2a-1302.
209          (35) The Department of Public Safety Restricted Account to the Department of Public
210     Safety, as provided in Section 53-3-106.
211          (36) The Utah Highway Patrol Aero Bureau Restricted Account created in Section

212     53-8-303.
213          (37) The DNA Specimen Restricted Account created in Section 53-10-407.
214          (38) The Canine Body Armor Restricted Account created in Section 53-16-201.
215          (39) The Technical Colleges Capital Projects Fund created in Section 53B-2a-118.
216          (40) The Higher Education Capital Projects Fund created in Section 53B-22-202.
217          (41) A certain portion of money collected for administrative costs under the School
218     Institutional Trust Lands Management Act, as provided under Section 53C-3-202.
219          (42) The Public Utility Regulatory Restricted Account created in Section 54-5-1.5,
220     subject to Subsection 54-5-1.5(4)(d).
221          (43) Funds collected from a surcharge fee to provide certain licensees with access to an
222     electronic reference library, as provided in Section 58-3a-105.
223          (44) Certain fines collected by the Division of Professional Licensing for violation of
224     unlawful or unprofessional conduct that are used for education and enforcement purposes, as
225     provided in Section 58-17b-505.
226          (45) Funds collected from a surcharge fee to provide certain licensees with access to an
227     electronic reference library, as provided in Section 58-22-104.
228          (46) Funds collected from a surcharge fee to provide certain licensees with access to an
229     electronic reference library, as provided in Section 58-55-106.
230          (47) Funds collected from a surcharge fee to provide certain licensees with access to an
231     electronic reference library, as provided in Section 58-56-3.5.
232          (48) Certain fines collected by the Division of Professional Licensing for use in
233     education and enforcement of the Security Personnel Licensing Act, as provided in Section
234     58-63-103.
235          (49) The Relative Value Study Restricted Account created in Section 59-9-105.
236          (50) The Cigarette Tax Restricted Account created in Section 59-14-204.
237          (51) Funds paid to the Division of Real Estate for the cost of a criminal background
238     check for a mortgage loan license, as provided in Section 61-2c-202.
239          (52) Funds paid to the Division of Real Estate for the cost of a criminal background
240     check for principal broker, associate broker, and sales agent licenses, as provided in Section
241     61-2f-204.
242          (53) Certain funds donated to the Department of Health and Human Services, as

243     provided in Section 26B-1-202.
244          (54) The National Professional Men's Basketball Team Support of Women and
245     Children Issues Restricted Account created in Section 26B-1-302.
246          (55) Certain funds donated to the Division of Child and Family Services, as provided
247     in Section 80-2-404.
248          (56) The Choose Life Adoption Support Restricted Account created in Section
249     80-2-502.
250          (57) Funds collected by the Office of Administrative Rules for publishing, as provided
251     in Section 63G-3-402.
252          (58) The Immigration Act Restricted Account created in Section 63G-12-103.
253          (59) Money received by the military installation development authority, as provided in
254     Section 63H-1-504.
255          (60) The Computer Aided Dispatch Restricted Account created in Section 63H-7a-303.
256          (61) The Unified Statewide 911 Emergency Service Account created in Section
257     63H-7a-304.
258          (62) The Utah Statewide Radio System Restricted Account created in Section
259     63H-7a-403.
260          (63) The Utah Capital Investment Restricted Account created in Section 63N-6-204.
261          (64) The Motion Picture Incentive Account created in Section 63N-8-103.
262          (65) Certain money payable for expenses of the Pete Suazo Utah Athletic Commission,
263     as provided under Section 63N-10-301.
264          (66) Funds collected by the housing of state probationary inmates or state parole
265     inmates, as provided in Subsection 64-13e-104(2).
266          (67) Certain forestry and fire control funds utilized by the Division of Forestry, Fire,
267     and State Lands, as provided in Section 65A-8-103.
268          (68) The Amusement Ride Safety Restricted Account, as provided in Section
269     72-16-204.
270          (69) Certain funds received by the Office of the State Engineer for well drilling fines or
271     bonds, as provided in Section 73-3-25.
272          (70) The Water Resources Conservation and Development Fund, as provided in
273     Section 73-23-2.

274          (71) Funds donated or paid to a juvenile court by private sources, as provided in
275     Subsection 78A-6-203(1)(c).
276          (72) Fees for certificate of admission created under Section 78A-9-102.
277          (73) Funds collected for adoption document access as provided in Sections 78B-6-141,
278     78B-6-144, and 78B-6-144.5.
279          (74) Funds collected for indigent defense as provided in Title 78B, Chapter 22, Part 4,
280     Utah Indigent Defense Commission.
281          (75) The Utah Geological Survey Oil, Gas, and Mining Restricted Account created in
282     Section 79-3-403.
283          (76) Revenue for golf user fees at the Wasatch Mountain State Park, Palisades State
284     Park, and Green River State Park, as provided under Section 79-4-403.
285          (77) Funds donated as described in Section 41-1a-422 for the State Park Fees
286     Restricted Account created in Section 79-4-402 for support of the Division of State Parks' dark
287     sky initiative.
288          (78) Certain funds received by the Division of State Parks from the sale or disposal of
289     buffalo, as provided under Section 79-4-1001.
290          (79) The Commerce Electronic Payment Fee Restricted Account created in Section
291     13-1-17.
292          Section 4. Appropriation.
293          The following sums of money are appropriated for the fiscal year beginning July 1,
294     2023, and ending June 30, 2024. These are additions to amounts previously appropriated for
295     fiscal year 2024. Under the terms and conditions of Title 63J, Chapter 1, Budgetary Procedures
296     Act, the Legislature appropriates the following sums of money from the funds or accounts
297     indicated for the use and support of the government of the state of Utah.
298     ITEM 1
299          To the Department of Commerce -- Commerce General Regulation
300               From the Commerce Service Account
($800,000)

301               From the Commerce Electronic Payment Fee Restricted Account
$800,000