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8 LONG TITLE
9 General Description:
10 This bill amends provisions related to the Independent Entities Code.
11 Highlighted Provisions:
12 This bill:
13 ▸ clarifies which entities are considered independent entities for purposes of the
14 Independent Entities Code;
15 ▸ adds the Public Service Commission to the list of independent entities and
16 authorizes the commission to participate in coverage under the Risk Management
17 Fund;
18 ▸ allows the Retirement and Independent Entities Committee to meet at certain times
19 to review draft legislation that is in the committee's purview;
20 ▸ requires the committee to review certain entities to determine whether an entity
21 should be treated as an independent entity;
22 ▸ amends the committee's duties concerning studying retirement issues;
23 ▸ provides for the return of an independent entity's unspent appropriations to the state
24 in certain circumstances;
25 ▸ repeals a provision exempting the Utah Housing Corporation from study by the
26 committee; 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 54-1-1, as last amended by Laws of Utah 1983, Chapter 246
35 63E-1-102, as last amended by Laws of Utah 2022, Chapters 44, 63
36 63E-1-201, as last amended by Laws of Utah 2014, Chapter 387
37 63E-1-202, as last amended by Laws of Utah 2002, Chapter 250
38 63E-1-402, as last amended by Laws of Utah 2002, Chapter 262
39 REPEALS:
40 63E-1-203, as last amended by Laws of Utah 2017, Chapter 363
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42 Be it enacted by the Legislature of the state of Utah:
43 Section 1. Section 54-1-1 is amended to read:
44 54-1-1. Establishment of commission -- Functions -- Participation in Risk
45 Management Fund.
46 (1) The Public Service Commission of Utah is established as an independent agency.
47 (2) The Public Service Commission is charged with discharging the duties and
48 exercising the legislative, adjudicative, and rule-making powers committed to it by law and
49 may sue and be sued in its own name.
50 (3) Subject to Subsection 63E-1-304(2), the Public Service Commission may
51 participate in coverage under the Risk Management Fund created by Section 63A-4-201.
52 Section 2. Section 63E-1-102 is amended to read:
53 63E-1-102. Definitions -- List of independent entities.
54 As used in this title:
55 (1) "Authorizing statute" means the statute creating an entity as an independent entity.
56 (2) "Committee" means the Retirement and Independent Entities Committee created by
57 Section 63E-1-201.
58 (3) "Independent corporation" means a corporation incorporated in accordance with
59 Chapter 2, Independent Corporations Act.
60 (4) (a) "Independent entity" means an entity having a public purpose relating to the
61 state or its citizens that is individually created by the state or is given by the state the right to
62 exist and conduct its affairs as an:
63 (i) independent state agency; or
64 (ii) independent corporation.
65 (b) [
66 entities are the:
67 (i) Utah Beef Council, created by Section 4-21-103;
68 (ii) Utah Dairy Commission created by Section 4-22-103;
69 (iii) Heber Valley Historic Railroad Authority created by Section 63H-4-102;
70 (iv) Utah Housing Corporation created by Section 63H-8-201;
71 (v) Utah State Fair Corporation created by Section 63H-6-103;
72 (vi) Utah State Retirement Office created by Section 49-11-201;
73 (vii) School and Institutional Trust Lands Administration created by Section
74 53C-1-201;
75 (viii) School and Institutional Trust Fund Office created by Section 53D-1-201;
76 (ix) Utah Communications Authority created by Section 63H-7a-201;
77 (x) Utah Capital Investment Corporation created by Section 63N-6-301; [
78 (xi) Military Installation Development Authority created by Section 63H-1-201[
79 (xii) Public Service Commission of Utah created by Section 54-1-1.
80 (c) Notwithstanding this Subsection (4), "independent entity" does not include:
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86 Local Districts; or
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88 Act.
89 (5) "Independent state agency" means an entity that is created by the state, but is
90 independent of the governor's direct supervisory control.
91 (6) "Money held in trust" means money maintained for the benefit of:
92 (a) one or more private individuals, including public employees;
93 (b) one or more public or private entities; or
94 (c) the owners of a quasi-public corporation.
95 (7) "Public corporation" means an artificial person, public in ownership, individually
96 created by the state as a body politic and corporate for the administration of a public purpose
97 relating to the state or its citizens.
98 (8) "Quasi-public corporation" means an artificial person, private in ownership,
99 individually created as a corporation by the state, which has accepted from the state the grant of
100 a franchise or contract involving the performance of a public purpose relating to the state or its
101 citizens.
102 Section 3. Section 63E-1-201 is amended to read:
103 63E-1-201. Retirement and Independent Entities Committee creation.
104 (1) There is created the Retirement and Independent Entities Committee composed of
105 15 legislators appointed as follows:
106 (a) six senators, appointed by the president of the Senate, with at least two senators
107 from the minority party; and
108 (b) nine representatives, appointed by the speaker of the House of Representatives,
109 with at least three representatives from the minority party.
110 (2) (a) The president of the Senate shall designate one of the Senate appointees as a
111 cochair of the committee.
112 (b) The speaker of the House of Representatives shall designate one of the House of
113 Representatives appointees as a cochair of the committee.
114 (3) Committee members serve for two years, but may be reappointed by the speaker or
115 the president.
116 (4) (a) The committee shall meet at least twice each year, but may meet more
117 frequently if the chairs determine that additional meetings are needed.
118 (b) At the committee chairs' discretion, the committee may meet during the period that
119 begins on the first Thursday in December and ends on the day before the beginning of the
120 annual general session to review pending or proposed legislation related to:
121 (i) an existing independent entity;
122 (ii) the creation of a new independent entity; or
123 (iii) Title 49, Utah State Retirement and Insurance Benefit Act.
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125 committee shall comply with the rules of legislative interim committees.
126 (6) The Office of Legislative Research and General Counsel shall provide staff services
127 to the committee.
128 (7) Compensation and expenses of a member who is a legislator are governed by
129 Section 36-2-2 and Legislative Joint Rules, Title 5, Legislative Compensation and Expenses.
130 Section 4. Section 63E-1-202 is amended to read:
131 63E-1-202. Duties of the committee.
132 (1) The committee shall:
133 (a) study the scope of this title and determine what entities should be treated under this
134 title as independent entities;
135 (b) review annually new entities created by the state and entities registered as
136 independent entities pursuant to Section 67-1a-15 to determine if any entities should be added
137 to the list of independent entities in Section 63E-1-102;
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139 including whether or not there should be consistency in these provisions;
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141 entity should be exempted;
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143 to each independent entity;
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146 accordance with the statutes governing the independent entity;
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148 to create a new independent entity;
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150 independent entity as provided in Subsection (2) and subject to Part 4, Privatization of
151 Independent Entities, recommend the appropriate method of changing the organizational status
152 of the independent entity; and
153 (j) study pending and proposed legislation, funding, and other issues related to Title 49,
154 Utah State Retirement and Insurance Benefit Act.
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167 (2) The committee may:
168 (a) establish a form for any report required under Subsection (1);
169 (b) make recommendations to the Legislature concerning the organizational status of
170 an independent entity; and
171 (c) advise the Legislature concerning issues involving independent entities[
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174 Section 5. Section 63E-1-402 is amended to read:
175 63E-1-402. Benefits to interested parties of an independent entity -- Disposition of
176 unused appropriations.
177 (1) If an independent entity is privatized, the following may not receive any benefit
178 prohibited under Subsection (2):
179 (a) an interested party of the independent entity;
180 (b) an entity in which an interested party holds a business interest;
181 (c) a lobbyist of the independent entity; or
182 (d) an entity in which a lobbyist of the independent entity holds a business interest.
183 (2) If an independent entity is privatized:
184 (a) a person described in Subsection (1)(a) or (b) may not receive:
185 (i) compensation from an independent entity that is conditioned in whole or in part on:
186 (A) the passage, defeat, or amendment of legislative action related to privatization; or
187 (B) the approval, modification, or denial of an executive action related to privatization;
188 or
189 (ii) any asset of the independent entity or its successor; and
190 (b) a person described in Subsection (1)(c) or (d) may not receive any:
191 (i) compensation that if received by the lobbyist would be in violation of Section
192 36-11-301; or
193 (ii) asset of the independent entity or its successor.
194 (3) Subsection (2)(a)(ii) does not apply to funds in a loan program administered by an
195 independent entity if:
196 (a) the funds were provided by an entity other than the state or were derived from those
197 funds, including loan payments, interest, and other charges paid by borrowers;
198 (b) the person described in Subsection (1)(a) or (b) who receives the funds assumes all
199 duties and obligations of the independent entity:
200 (i) under the contract with the entity that provided the initial funding; and
201 (ii) relating to the loan program;
202 (c) separate records have been maintained regarding the use of the funds;
203 (d) the funds may only be used for purposes specified in an agreement with the entity
204 that provided the initial funding; and
205 (e) the funds may only be transferred to a person described in Subsection (1)(a) or (b) if
206 the transfer is approved by the entity that provided the initial funding.
207 (4) (a) If an action described in Subsection 63E-1-401(5)(b)(i) or (ii) is taken under
208 circumstances in which the independent entity is no longer functioning, the independent entity
209 shall return to the Division of Finance any unused appropriations made to the independent
210 entity by the Legislature.
211 (b) The Division of Finance shall deposit funds received under Subsection (4)(a) into
212 the General Fund.
213 Section 6. Repealer.
214 This bill repeals:
215 Section 63E-1-203, Exemptions from committee activities.