Representative Melissa G. Ballard proposes the following substitute bill:


1     
JOINT RULES RESOLUTION - BUDGET EFFICIENCY

2     
MODIFICATIONS

3     
2023 GENERAL SESSION

4     
STATE OF UTAH

5     
Chief Sponsor: Melissa G. Ballard

6     
Senate Sponsor: Evan J. Vickers

7     

8     LONG TITLE
9     General Description:
10          This joint rules resolution addresses budget reporting and evaluation requirements.
11     Highlighted Provisions:
12          This resolution:
13          ▸     amends definitions;
14          ▸     modifies the responsibilities of the Office of the Legislative Auditor General related
15     to an efficiency evaluation;
16          ▸     requires an appropriations subcommittee to review nonlapsing appropriations; and
17          ▸     makes technical and conforming changes.
18     Special Clauses:
19          This resolution provides a coordination clause.
20     Legislative Rules Affected:
21     AMENDS:
22          JR1-4-601
23          JR1-4-603
24          JR3-2-501
25     ENACTS:
26          JR3-2-709
27     Legislative Rules Affected by Coordination Clause:
28          JR3-2-501
29          JR3-2-709
30     

31     Be it resolved by the Legislature of the state of Utah:
32          Section 1. JR1-4-601 is amended to read:
33          JR1-4-601. Definitions.
34          As used in this part:
35          (1) "Appropriated entity" means [any entity that receives state funds] the same as that
36     term is defined in Utah Code Section 63J-1-902.
37          (2) "Efficiency evaluation" means an evaluation of a government process identified for
38     efficiency improvements under this part.
39          [(2) "Product or service" means an appropriated entity's final output or outcome.]
40          (3) "Government process" means [a set of functions and procedures by which an
41     appropriated entity creates a product or service] the same as that term is defined in Utah Code
42     Section 63J-1-902.
43          (4) "Legislative office" means:
44          (a) the Office of Legislative Research and General Counsel;
45          (b) the Office of the Legislative Auditor General;
46          (c) the Office of the Legislative Fiscal Analyst; or
47          (d) Legislative Services.
48          (5) "Performance measure" means [a program objective, effectiveness measure,
49     program size indicator, or other related measure] the same as that term is defined in Utah Code
50     Section 63J-1-902.
51          (6) "Product or service" means the same as that term is defined in Utah Code Section
52     63J-1-902.
53          [(6) "Targeted efficiency evaluation" means an evaluation of a government process
54     identified for efficiency improvements under this part.]
55          Section 2. JR1-4-603 is amended to read:
56          JR1-4-603. Efficiency improvement process.
57          [(1) By May 1, 2022, the Office of the Legislative Fiscal Analyst shall, in collaboration
58     with the Governor's Office of Planning and Budget:]
59          [(a) establish a process to conduct targeted efficiency evaluations; and]
60          [(b) submit a plan to the Legislative Management Committee that:]
61          [(i) prioritizes the government processes for which the Office of the Legislative Fiscal
62     Analyst will conduct a targeted efficiency evaluation; and]
63          [(ii) establishes a schedule by which the Office of the Legislative Fiscal Analyst will
64     conduct each targeted efficiency evaluation.]
65          [(2)] (1) (a) When conducting [a targeted] an efficiency evaluation under this rule, the
66     Office of the Legislative Fiscal Analyst may work with the Governor's Office of Planning and
67     Budget and the appropriated entity that administers the government process to identify:
68          (i) any operational inefficiencies in the government process and ways to eliminate the
69     inefficiencies;
70          (ii) rewards or incentives for implementing recommendations of the [targeted]
71     efficiency evaluation; and
72          (iii) any misalignment in the appropriated entity's products or services in relation to the
73     appropriated entity's adopted performance measures.
74          (b) The Office of the Legislative Fiscal Analyst shall report to the Office of the
75     Legislative Auditor General the results of each [targeted] efficiency evaluation.
76          [(3)] (2) (a) The Office of the Legislative Auditor General shall independently review
77     the results of each [targeted] efficiency evaluation [and, based on that review, conduct further
78     risk assessment to determine the extent to which the appropriated entity has implemented any
79     recommendations from the targeted efficiency evaluation] and may conduct initial survey work.
80          (b) Based on the review described in Subsection [(3)(a)] (2)(a), the Office of the
81     Legislative Auditor General may recommend to the Audit Subcommittee created in Utah Code
82     Section 36-12-8 that the Office of the Legislative Auditor General conducts an in-depth
83     [review] audit of the appropriated entity.
84          (c) The Office of the Legislative Auditor General shall provide a copy of any in-depth
85     [review described in Subsection (3)(b) to the legislative interim committee and the legislative
86     appropriations subcommittee with oversight responsibility for the appropriated entity] audit to
87     the Audit Subcommittee created in Utah Code Section 36-12-8 for referral to a legislative
88     committee or appropriations subcommittee.
89          [(4)] (3) [(a)] Upon receipt of an in-depth [review described in Subsection (3),] audit
90     under Subsection (2)(c):
91          (a) a legislative interim committee shall:
92          (i) review the appropriated entity that is the subject of the in-depth [review] audit; and
93          (ii) if appropriate, recommend to the Legislature any legislation to improve the
94     efficiency of the appropriated entity[.]; and
95          (b) [Upon receipt of an in-depth review described in Subsection (3),] a legislative
96     appropriations subcommittee shall:
97          (i) review the appropriated entity that is the subject of the in-depth [review] audit;
98          (ii) determine whether the appropriated entity is appropriately using the appropriated
99     entity's state funds; and
100          (iii) if appropriate, recommend to the Legislature any budgetary changes to improve the
101     efficiency of the appropriated entity.
102          [(5)] (4) As part of the efficiency improvement process described in this rule, the
103     Office of the Legislative Fiscal Analyst or the Office of the Legislative Auditor General may,
104     in consultation with the Governor's Office of Planning and Budget:
105          (a) recommend that an appropriated entity receives training; or
106          (b) provide training to the appropriated entity.
107          [(6)] (5) The efficiency improvement process described in this rule does not apply to a
108     legislative department government process.
109          Section 3. JR3-2-501 is amended to read:
110          JR3-2-501. Meetings -- Accountable process budget creation -- Appropriation
111     reviews.
112          (1) (a) During the interim, the Executive Appropriations Committee shall meet at least
113     every other month on the day before interim meetings.
114          (b) The appropriations subcommittee chairs may attend these meetings and provide
115     input regarding their budget.
116          (2) [Appropriation] Appropriations subcommittees shall meet at least once during the
117     interim and may also hold additional meetings if authorized by the Legislative Management
118     Committee.
119          (3) (a) Each interim, each appropriations subcommittee shall create an accountable
120     process budget for approximately 20% of the budgets that fall within the [appropriation]
121     appropriations subcommittee's responsibilities.
122          (b) Each appropriations subcommittee shall ensure that each of the budgets for which
123     the appropriations subcommittee has responsibility is the subject of an accountable budget
124     process at least once every five years.
125          (4) (a) The Executive Appropriations Committee may, based on a legislator's or
126     citizen's complaint, review any appropriation, whether in an appropriations bill or otherwise, to
127     ensure that the entity to which the funds were appropriated complies with any legislative intent
128     expressed in the legislation appropriating the funds.
129          (b) If the Executive Appropriations Committee finds that an entity has not complied
130     with any legislative intent concerning an appropriation expressed in the legislation
131     appropriating the fund, the committee may make a recommendation concerning the
132     appropriation to the entity receiving the funds and the Legislative Management Committee.
133          Section 4. JR3-2-709 is enacted to read:
134          JR3-2-709. Review of nonlapsing appropriations.
135          Each appropriations subcommittee shall, during an accountable budget process under
136     JR3-2-501, review each account, fund, and appropriation to a program that is designated as
137     nonlapsing under Utah Code Title 63J, Chapter 1, Part 6, Unused Balances.
138          Section 5. Coordinating H.J.R. 12 and H.B. 322 -- Substantive and technical
139     amendments.
140          If this H.J.R. 12 and H.B. 322, Budget Reporting Requirements, both pass and become
141     law, it is the intent of the Legislature that the Office of Legislative Research and General
142     Counsel prepare the Legislative Rules database for publication by:
143          (1) amending Subsection JR3-2-501(3) to read:
144          "(3) (a) Each interim, each appropriations subcommittee shall create an accountable
145     process budget for approximately 20% of the budgets that fall within the appropriations
146     subcommittee's responsibilities.
147          (b) Each appropriations subcommittee shall ensure that each of the budgets for which
148     the appropriations subcommittee has responsibility is the subject of an accountable budget
149     process at least once every five years.
150          (c) For each budget that is subject to an accountable budget process, an appropriations
151     subcommittee shall:
152          (i) review and discuss the budget evaluation submitted in accordance with Utah Code
153     Section 63J-1-903;
154          (ii) identify whether any portion of the budget overlaps with another budget; and
155          (iii) identify any opportunities to increase budgetary efficiencies."; and
156          (2) amending JR3-2-709 to read:
157          "(1) Each appropriations subcommittee shall:
158          (a) during an accountable budget process under JR3-2-501, review each account, fund,
159     and appropriation to a program that is designated as nonlapsing under Utah Code Title 63J,
160     Chapter 1, Part 6, Unused Balances; and
161          (b) review any nonlapsing appropriations report submitted in accordance with Utah
162     Code Section 63J-1-602.
163          (2) For any nonlapsing appropriation that is saved over multiple years to pay for an
164     anticipated expense, an appropriations subcommittee shall make a recommendation as to
165     whether the Legislature should instead appropriate one-time funding for the expense.".