Chief Sponsor: Wayne A. Harper

House Sponsor: Walt Brooks


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

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) ["Independent entity" includes the] For purposes of this title, the independent
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; [and]
78          (xi) Military Installation Development Authority created by Section 63H-1-201[.]; and
79          (xii) Public Service Commission of Utah created by Section 54-1-1.
80          (c) Notwithstanding this Subsection (4), "independent entity" does not include:
81          [(i) the Public Service Commission of Utah created by Section 54-1-1;]
82          [(ii)] (i) an institution within the state system of higher education;
83          [(iii)] (ii) a city, county, or town;
84          [(iv)] (iii) a local school district;
85          [(v)] (iv) a local district under Title 17B, Limited Purpose Local Government Entities -

86     Local Districts; or
87          [(vi)] (v) a special service district under Title 17D, Chapter 1, Special Service District
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.
124          (5) [In conducting all of its business] Except as provided in Subsection (4), the
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;
138          [(b)] (c) study the provisions of the Utah Code that govern each independent entity,
139     including whether or not there should be consistency in these provisions;
140          [(c)] (d) study what provisions of the Utah Code, if any, from which each independent
141     entity should be exempted;

142          [(d)] (e) study whether or not the state should receive services from or provide services
143     to each independent entity;
144          [(e)] (f) request and hear reports from each independent entity;
145          [(f)] (g) review the annual audit of each independent entity that is performed in
146     accordance with the statutes governing the independent entity;
147          [(g)] (h) comply with Part 3, Creation of Independent Entities, in reviewing a proposal
148     to create a new independent entity;
149          [(h)] (i) if the committee recommends a change in the organizational status of an
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.
155          [(i) study the following concerning an entity created by local agreement under Title 11,
156     Chapter 13, Interlocal Cooperation Act, if the state is a party to the agreement creating the
157     entity:]
158          [(i) whether or not the entity should be subject to this chapter;]
159          [(ii) whether or not the state should receive services from or provide services to the
160     entity;]
161          [(iii) reporting and audit requirements for the entity; and]
162          [(iv) the need, if any, to modify statutes related to the entity;]
163          [(j) make a recommendation on the organizational status of each independent entity
164     prior to the 2002 General Session; and]
165          [(k) report annually to the Legislative Management Committee by no later than the
166     Legislative Management Committee's November meeting.]
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[; and].
172          [(d) study issues related to the implementation of Title 49, Utah State Retirement and
173     Insurance Benefit Act.]
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.