Chief Sponsor: Wayne A. Harper

House Sponsor: Walt Brooks


9     Committee Note:
10          The Retirement and Independent Entities Interim Committee recommended this bill.
11               Legislative Vote:     10 voting for     0 voting against     5 absent
12     General Description:
13          This bill amends provisions related to the Independent Entities Code.
14     Highlighted Provisions:
15          This bill:
16          ▸     clarifies which entities are considered independent entities for purposes of the
17     Independent Entities Code;
18          ▸     adds the Public Service Commission to the list of independent entities and
19     authorizes the commission to participate in coverage under the Risk Management
20     Fund;
21          ▸     allows the Retirement and Independent Entities Committee to meet at certain times
22     to review draft legislation that is in the committee's purview;
23          ▸     requires the committee to review certain entities to determine whether an entity
24     should be treated as an independent entity;
25          ▸     amends the committee's duties concerning studying retirement issues;
26          ▸     provides for the return of an independent entity's unspent appropriations to the state
27     in certain circumstances;

28          ▸     repeals a provision exempting the Utah Housing Corporation from study by the
29     committee; and
30          ▸     makes technical and conforming changes.
31     Money Appropriated in this Bill:
32          None
33     Other Special Clauses:
34          None
35     Utah Code Sections Affected:
36     AMENDS:
37          54-1-1, as last amended by Laws of Utah 1983, Chapter 246
38          63E-1-102, as last amended by Laws of Utah 2022, Chapters 44, 63
39          63E-1-201, as last amended by Laws of Utah 2014, Chapter 387
40          63E-1-202, as last amended by Laws of Utah 2002, Chapter 250
41          63E-1-402, as last amended by Laws of Utah 2002, Chapter 262
42     REPEALS:
43          63E-1-203, as last amended by Laws of Utah 2017, Chapter 363

45     Be it enacted by the Legislature of the state of Utah:
46          Section 1. Section 54-1-1 is amended to read:
47          54-1-1. Establishment of commission -- Functions -- Participation in Risk
48     Management Fund.
49          (1) The Public Service Commission of Utah is established as an independent agency.
50          (2) The Public Service Commission is charged with discharging the duties and
51     exercising the legislative, adjudicative, and rule-making powers committed to it by law and
52     may sue and be sued in its own name.
53          (3) Subject to Subsection 63E-1-304(2), the Public Service Commission may
54     participate in coverage under the Risk Management Fund created by Section 63A-4-201.
55          Section 2. Section 63E-1-102 is amended to read:
56          63E-1-102. Definitions -- List of independent entities.
57          As used in this title:
58          (1) "Authorizing statute" means the statute creating an entity as an independent entity.

59          (2) "Committee" means the Retirement and Independent Entities Committee created by
60     Section 63E-1-201.
61          (3) "Independent corporation" means a corporation incorporated in accordance with
62     Chapter 2, Independent Corporations Act.
63          (4) (a) "Independent entity" means an entity having a public purpose relating to the
64     state or its citizens that is individually created by the state or is given by the state the right to
65     exist and conduct its affairs as an:
66          (i) independent state agency; or
67          (ii) independent corporation.
68          (b) ["Independent entity" includes the] For purposes of this title, the independent
69     entities are the:
70          (i) Utah Beef Council, created by Section 4-21-103;
71          (ii) Utah Dairy Commission created by Section 4-22-103;
72          (iii) Heber Valley Historic Railroad Authority created by Section 63H-4-102;
73          (iv) Utah Housing Corporation created by Section 63H-8-201;
74          (v) Utah State Fair Corporation created by Section 63H-6-103;
75          (vi) Utah State Retirement Office created by Section 49-11-201;
76          (vii) School and Institutional Trust Lands Administration created by Section
77     53C-1-201;
78          (viii) School and Institutional Trust Fund Office created by Section 53D-1-201;
79          (ix) Utah Communications Authority created by Section 63H-7a-201;
80          (x) Utah Capital Investment Corporation created by Section 63N-6-301; [and]
81          (xi) Military Installation Development Authority created by Section 63H-1-201[.]; and
82          (xii) Public Service Commission of Utah created by Section 54-1-1.
83          (c) Notwithstanding this Subsection (4), "independent entity" does not include:
84          [(i) the Public Service Commission of Utah created by Section 54-1-1;]
85          [(ii)] (i) an institution within the state system of higher education;
86          [(iii)] (ii) a city, county, or town;
87          [(iv)] (iii) a local school district;
88          [(v)] (iv) a local district under Title 17B, Limited Purpose Local Government Entities -
89     Local Districts; or

90          [(vi)] (v) a special service district under Title 17D, Chapter 1, Special Service District
91     Act.
92          (5) "Independent state agency" means an entity that is created by the state, but is
93     independent of the governor's direct supervisory control.
94          (6) "Money held in trust" means money maintained for the benefit of:
95          (a) one or more private individuals, including public employees;
96          (b) one or more public or private entities; or
97          (c) the owners of a quasi-public corporation.
98          (7) "Public corporation" means an artificial person, public in ownership, individually
99     created by the state as a body politic and corporate for the administration of a public purpose
100     relating to the state or its citizens.
101          (8) "Quasi-public corporation" means an artificial person, private in ownership,
102     individually created as a corporation by the state, which has accepted from the state the grant of
103     a franchise or contract involving the performance of a public purpose relating to the state or its
104     citizens.
105          Section 3. Section 63E-1-201 is amended to read:
106          63E-1-201. Retirement and Independent Entities Committee creation.
107          (1) There is created the Retirement and Independent Entities Committee composed of
108     15 legislators appointed as follows:
109          (a) six senators, appointed by the president of the Senate, with at least two senators
110     from the minority party; and
111          (b) nine representatives, appointed by the speaker of the House of Representatives,
112     with at least three representatives from the minority party.
113          (2) (a) The president of the Senate shall designate one of the Senate appointees as a
114     cochair of the committee.
115          (b) The speaker of the House of Representatives shall designate one of the House of
116     Representatives appointees as a cochair of the committee.
117          (3) Committee members serve for two years, but may be reappointed by the speaker or
118     the president.
119          (4) (a) The committee shall meet at least twice each year, but may meet more
120     frequently if the chairs determine that additional meetings are needed.

121          (b) At the committee chairs' discretion, the committee may meet during the period that
122     begins on the first Thursday in December and ends on the day before the beginning of the
123     annual general session to review pending or proposed legislation related to:
124          (i) an existing independent entity;
125          (ii) the creation of a new independent entity; or
126          (iii) Title 49, Utah State Retirement and Insurance Benefit Act.
127          (5) [In conducting all of its business] Except as provided in Subsection (4), the
128     committee shall comply with the rules of legislative interim committees.
129          (6) The Office of Legislative Research and General Counsel shall provide staff services
130     to the committee.
131          (7) Compensation and expenses of a member who is a legislator are governed by
132     Section 36-2-2 and Legislative Joint Rules, Title 5, Legislative Compensation and Expenses.
133          Section 4. Section 63E-1-202 is amended to read:
134          63E-1-202. Duties of the committee.
135          (1) The committee shall:
136          (a) study the scope of this title and determine what entities should be treated under this
137     title as independent entities;
138          (b) review annually new entities created by the state and entities registered as
139     independent entities pursuant to Section 67-1a-15 to determine if any entities should be added
140     to the list of independent entities in Section 63E-1-102;
141          [(b)] (c) study the provisions of the Utah Code that govern each independent entity,
142     including whether or not there should be consistency in these provisions;
143          [(c)] (d) study what provisions of the Utah Code, if any, from which each independent
144     entity should be exempted;
145          [(d)] (e) study whether or not the state should receive services from or provide services
146     to each independent entity;
147          [(e)] (f) request and hear reports from each independent entity;
148          [(f)] (g) review the annual audit of each independent entity that is performed in
149     accordance with the statutes governing the independent entity;
150          [(g)] (h) comply with Part 3, Creation of Independent Entities, in reviewing a proposal
151     to create a new independent entity;

152          [(h)] (i) if the committee recommends a change in the organizational status of an
153     independent entity as provided in Subsection (2) and subject to Part 4, Privatization of
154     Independent Entities, recommend the appropriate method of changing the organizational status
155     of the independent entity; and
156          (j) study pending and proposed legislation, funding, and other issues related to Title 49,
157     Utah State Retirement and Insurance Benefit Act.
158          [(i) study the following concerning an entity created by local agreement under Title 11,
159     Chapter 13, Interlocal Cooperation Act, if the state is a party to the agreement creating the
160     entity:]
161          [(i) whether or not the entity should be subject to this chapter;]
162          [(ii) whether or not the state should receive services from or provide services to the
163     entity;]
164          [(iii) reporting and audit requirements for the entity; and]
165          [(iv) the need, if any, to modify statutes related to the entity;]
166          [(j) make a recommendation on the organizational status of each independent entity
167     prior to the 2002 General Session; and]
168          [(k) report annually to the Legislative Management Committee by no later than the
169     Legislative Management Committee's November meeting.]
170          (2) The committee may:
171          (a) establish a form for any report required under Subsection (1);
172          (b) make recommendations to the Legislature concerning the organizational status of
173     an independent entity; and
174          (c) advise the Legislature concerning issues involving independent entities[; and].
175          [(d) study issues related to the implementation of Title 49, Utah State Retirement and
176     Insurance Benefit Act.]
177          Section 5. Section 63E-1-402 is amended to read:
178          63E-1-402. Benefits to interested parties of an independent entity -- Disposition of
179     unused appropriations.
180          (1) If an independent entity is privatized, the following may not receive any benefit
181     prohibited under Subsection (2):
182          (a) an interested party of the independent entity;

183          (b) an entity in which an interested party holds a business interest;
184          (c) a lobbyist of the independent entity; or
185          (d) an entity in which a lobbyist of the independent entity holds a business interest.
186          (2) If an independent entity is privatized:
187          (a) a person described in Subsection (1)(a) or (b) may not receive:
188          (i) compensation from an independent entity that is conditioned in whole or in part on:
189          (A) the passage, defeat, or amendment of legislative action related to privatization; or
190          (B) the approval, modification, or denial of an executive action related to privatization;
191     or
192          (ii) any asset of the independent entity or its successor; and
193          (b) a person described in Subsection (1)(c) or (d) may not receive any:
194          (i) compensation that if received by the lobbyist would be in violation of Section
195     36-11-301; or
196          (ii) asset of the independent entity or its successor.
197          (3) Subsection (2)(a)(ii) does not apply to funds in a loan program administered by an
198     independent entity if:
199          (a) the funds were provided by an entity other than the state or were derived from those
200     funds, including loan payments, interest, and other charges paid by borrowers;
201          (b) the person described in Subsection (1)(a) or (b) who receives the funds assumes all
202     duties and obligations of the independent entity:
203          (i) under the contract with the entity that provided the initial funding; and
204          (ii) relating to the loan program;
205          (c) separate records have been maintained regarding the use of the funds;
206          (d) the funds may only be used for purposes specified in an agreement with the entity
207     that provided the initial funding; and
208          (e) the funds may only be transferred to a person described in Subsection (1)(a) or (b) if
209     the transfer is approved by the entity that provided the initial funding.
210          (4) (a) If an action described in Subsection 63E-1-401(5)(b)(i) or (ii) is taken under
211     circumstances in which the independent entity is no longer functioning, the independent entity
212     shall return to the Division of Finance any unused appropriations made to the independent
213     entity by the Legislature.

214          (b) The Division of Finance shall deposit funds received under Subsection (4)(a) into
215     the General Fund.
216          Section 6. Repealer.
217          This bill repeals:
218          Section 63E-1-203, Exemptions from committee activities.