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7 LONG TITLE
8 General Description:
9 This bill addresses contingency planning related to federal funds.
10 Highlighted Provisions:
11 This bill:
12 ▸ defines terms;
13 ▸ requires a state agency to provide a contingency disclosure and plan, and a state
14 jurisdiction evaluation, when submitting a federal funds reauthorization or a new
15 federal funds request above a certain threshold;
16 ▸ requires a state agency that meets certain thresholds for federal funding to create a
17 contingency plan related to that funding;
18 ▸ repeals provisions regarding federal receipts reporting requirements; and
19 ▸ makes technical and conforming changes.
20 Money Appropriated in this Bill:
21 None
22 Other Special Clauses:
23 None
24 Utah Code Sections Affected:
25 AMENDS:
26 26B-3-130, as last amended by Laws of Utah 2023, Chapter 16 and renumbered and
27 amended by Laws of Utah 2023, Chapter 306
28 63J-5-102, as last amended by Laws of Utah 2018, Chapter 467
29 63J-5-103, as last amended by Laws of Utah 2017, Chapter 247
30 63J-5-204, as last amended by Laws of Utah 2016, Chapter 272
31 ENACTS:
32 63J-5-301, Utah Code Annotated 1953
33 63J-5-302, Utah Code Annotated 1953
34 REPEALS:
35 63J-1-219, as last amended by Laws of Utah 2022, Chapter 447
36 63J-5-101, as enacted by Laws of Utah 2008, Chapter 382
37
38 Be it enacted by the Legislature of the state of Utah:
39 Section 1. Section 26B-3-130 is amended to read:
40 26B-3-130. Medicaid intergovernmental transfer report -- Approval
41 requirements.
42 (1) As used in this section:
43 (a) (i) "Intergovernmental transfer" means the transfer of public funds from:
44 (A) a local government entity to another nonfederal governmental entity; or
45 (B) from a nonfederal, government owned health care facility regulated under Chapter
46 2, Part 2, Health Care Facility Licensing and Inspection, to another nonfederal governmental
47 entity.
48 (ii) "Intergovernmental transfer" does not include:
49 (A) the transfer of public funds from one state agency to another state agency; or
50 (B) a transfer of funds from the University of Utah Hospitals and Clinics.
51 (b) (i) "Intergovernmental transfer program" means a federally approved
52 reimbursement program or category that is authorized by the Medicaid state plan or waiver
53 authority for intergovernmental transfers.
54 (ii) "Intergovernmental transfer program" does not include the addition of a provider to
55 an existing intergovernmental transfer program.
56 (c) "Local government entity" means a county, city, town, special service district,
57 special district, or local education agency as that term is defined in Section 63J-5-102.
58 (d) "Non-state government entity" means a hospital authority, hospital district, health
59 care district, special service district, county, or city.
60 (2) (a) An entity that receives federal Medicaid dollars from the department as a result
61 of an intergovernmental transfer shall, on or before August 1, 2017, and on or before August 1
62 each year thereafter, provide the department with:
63 (i) information regarding the payments funded with the intergovernmental transfer as
64 authorized by and consistent with state and federal law;
65 (ii) information regarding the entity's ability to repay federal funds, to the extent
66 required by the department in the contract for the intergovernmental transfer; and
67 (iii) other information reasonably related to the intergovernmental transfer that may be
68 required by the department in the contract for the intergovernmental transfer.
69 (b) On or before October 15, 2017, and on or before October 15 each subsequent year,
70 the department shall prepare a report for the Executive Appropriations Committee that
71 includes:
72 (i) the amount of each intergovernmental transfer under Subsection (2)(a);
73 (ii) a summary of changes to CMS regulations and practices that are known by the
74 department regarding federal funds related to an intergovernmental transfer program; and
75 (iii) other information the department gathers about the intergovernmental transfer
76 under Subsection (2)(a).
77 (3) The department shall not create a new intergovernmental transfer program after
78 July 1, 2017, unless the department reports to the Executive Appropriations Committee, in
79 accordance with Section 63J-5-206, before submitting the new intergovernmental transfer
80 program for federal approval. The report shall include information required by Subsection
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82 (4) (a) The department shall enter into new Nursing Care Facility Non-State
83 Government-Owned Upper Payment Limit program contracts and contract amendments adding
84 new nursing care facilities and new non-state government entity operators in accordance with
85 this Subsection (4).
86 (b) (i) If the nursing care facility expects to receive less than $1,000,000 in federal
87 funds each year from the Nursing Care Facility Non-State Government-Owned Upper Payment
88 Limit program, excluding seed funding and administrative fees paid by the non-state
89 government entity, the department shall enter into a Nursing Care Facility Non-State
90 Government-Owned Upper Payment Limit program contract with the non-state government
91 entity operator of the nursing care facility.
92 (ii) If the nursing care facility expects to receive between $1,000,000 and $10,000,000
93 in federal funds each year from the Nursing Care Facility Non-State Government-Owned
94 Upper Payment Limit program, excluding seed funding and administrative fees paid by the
95 non-state government entity, the department shall enter into a Nursing Care Facility Non-State
96 Government-Owned Upper Payment Limit program contract with the non-state government
97 entity operator of the nursing care facility after receiving the approval of the Executive
98 Appropriations Committee.
99 (iii) If the nursing care facility expects to receive more than $10,000,000 in federal
100 funds each year from the Nursing Care Facility Non-State Government-Owned Upper Payment
101 Limit program, excluding seed funding and administrative fees paid by the non-state
102 government entity, the department may not approve the application without obtaining approval
103 from the Legislature and the governor.
104 (c) A non-state government entity may not participate in the Nursing Care Facility
105 Non-State Government-Owned Upper Payment Limit program unless the non-state government
106 entity is a special service district, county, or city that operates a hospital or holds a license
107 under Chapter 2, Part 2, Health Care Facility Licensing and Inspection.
108 (d) Each non-state government entity that participates in the Nursing Care Facility
109 Non-State Government-Owned Upper Payment Limit program shall certify to the department
110 that:
111 (i) the non-state government entity is a local government entity that is able to make an
112 intergovernmental transfer under applicable state and federal law;
113 (ii) the non-state government entity has sufficient public funds or other permissible
114 sources of seed funding that comply with the requirements in 42 C.F.R. Part 433, Subpart B;
115 (iii) the funds received from the Nursing Care Facility Non-State Government-Owned
116 Upper Payment Limit program are:
117 (A) for each nursing care facility, available for patient care until the end of the
118 non-state government entity's fiscal year; and
119 (B) used exclusively for operating expenses for nursing care facility operations, patient
120 care, capital expenses, rent, royalties, and other operating expenses; and
121 (iv) the non-state government entity has completed all licensing, enrollment, and other
122 forms and documents required by federal and state law to register a change of ownership with
123 the department and with CMS.
124 (5) The department shall add a nursing care facility to an existing Nursing Care Facility
125 Non-State Government-Owned Upper Payment Limit program contract if:
126 (a) the nursing care facility is managed by or affiliated with the same non-state
127 government entity that also manages one or more nursing care facilities that are included in an
128 existing Nursing Care Facility Non-State Government-Owned Upper Payment Limit program
129 contract; and
130 (b) the non-state government entity makes the certification described in Subsection
131 (4)(d)(ii).
132 (6) The department may not increase the percentage of the administrative fee paid by a
133 non-state government entity to the department under the Nursing Care Facility Non-State
134 Government-Owned Upper Payment Limit program.
135 (7) The department may not condition participation in the Nursing Care Facility
136 Non-State Government-Owned Upper Payment Limit program on:
137 (a) a requirement that the department be allowed to direct or determine the types of
138 patients that a non-state government entity will treat or the course of treatment for a patient in a
139 non-state government nursing care facility; or
140 (b) a requirement that a non-state government entity or nursing care facility post a
141 bond, purchase insurance, or create a reserve account of any kind.
142 (8) The non-state government entity shall have the primary responsibility for ensuring
143 compliance with Subsection (4)(d)(ii).
144 (9) (a) The department may not enter into a new Nursing Care Facility Non-State
145 Government-Owned Upper Payment Limit program contract before January 1, 2019.
146 (b) Subsection (9)(a) does not apply to:
147 (i) a new Nursing Care Facility Non-State Government-Owned Upper Payment Limit
148 program contract that was included in the federal funds request summary under Section
149 63J-5-201 for fiscal year 2018; or
150 (ii) a nursing care facility that is operated or managed by the same company as a
151 nursing care facility that was included in the federal funds request summary under Section
152 63J-5-201 for fiscal year 2018.
153 Section 2. Section 63J-5-102 is amended to read:
154 63J-5-102. Definitions.
155 (1) As used in this chapter:
156 (a) (i) "Agency" means a department, division, committee, commission, council, court,
157 or other administrative subunit of the state.
158 (ii) "Agency" includes:
159 (A) executive branch entities;
160 (B) judicial branch entities; and
161 (C) the State Board of Education.
162 (iii) "Agency" does not mean higher education institutions or political subdivisions.
163 (b) "Contingency disclosure and plan" means, with respect to a federal funds
164 reauthorization or new federal funds request, the submitting or requesting agency's:
165 (i) disclosure of:
166 (A) the likelihood that the amount or value of the federal funds will be reduced, and
167 how that likelihood changes over time; and
168 (B) the likelihood that the federal funds will become unavailable, and how that
169 likelihood changes over time;
170 (ii) explanation of:
171 (A) whether accepting the federal funds may create an expectation of ongoing funding
172 by any beneficiary of the funds; and
173 (B) as applicable, how the agency will communicate to stakeholders that services
174 funded by the federal funds may or will be temporary;
175 (iii) plan for how the agency will:
176 (A) proceed if the amount or value of the federal funds are unexpectedly reduced in
177 any material degree or amount;
178 (B) proceed if the federal funds become unavailable unexpectedly;
179 (C) wind down the program or services funded by the federal funds when the federal
180 funds are exhausted; and
181 (D) transition any beneficiaries of the funds to a different program or service provider
182 if the agency is unable to continue providing the same program or services due to a decrease or
183 loss of federal funds; and
184 (iv) designation of the federal funds and the program or purpose for which the funds
185 will be used as either:
186 (A) mandatory under federal or state law;
187 (B) high priority; or
188 (C) low priority.
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190 government or from other individuals or entities for or on behalf of the United States and
191 deposited with the state treasurer or any agency of the state.
192 (ii) "Federal funds" includes federal assistance and federal assistance programs,
193 however described.
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198 (i) the formal submission from an agency to the federal government applying for or
199 seeking reauthorization of federal funds which the state is currently receiving;
200 (ii) the formal submission from an agency to the federal government applying for or
201 seeking reauthorization to participate in a federal program in which the state is currently
202 participating that will result in federal funds being transferred to an agency; or
203 (iii) that period after the first year of a previously authorized and awarded grant or
204 funding award, during which federal funds are disbursed or are scheduled to be disbursed after
205 the first year because the term of the grant or financial award extends for more than one year.
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207 (A) the amount of money that is being requested or is available to be received by the
208 state from the federal government for each federal funds reauthorization or new federal funds
209 request;
210 (B) those federal funds reauthorizations and new federal funds requests that are
211 included as part of the agency's proposed budget for the fiscal year, and the amount of those
212 requests;
213 (C) the amount of new state money, if any, that will be required to receive the federal
214 funds or participate in the federal program;
215 (D) the number of additional permanent full-time employees, additional permanent
216 part-time employees, or combination of additional permanent full-time employees and
217 additional permanent part-time employees, if any, that the state estimates are needed in order to
218 receive the federal funds or participate in the federal program; [
219 (E) any requirements that the state must meet as a condition for receiving the federal
220 funds or participating in the federal program[
221 (F) for each federal funds reauthorization for qualifying federal funds and each new
222 federal funds request for qualifying federal funds, a contingency disclosure and plan, and a
223 state jurisdiction evaluation.
224 (ii) "Federal funds request summary" includes, if available:
225 (A) the letter awarding an agency a grant of federal funds or other official
226 documentation awarding an agency a grant of federal funds; and
227 (B) a document detailing federal maintenance of effort requirements.
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229 effort, or earmarking requirements, as defined in Office of Management and Budget
230 requirements, that are imposed on an agency as a condition of receiving federal funds.
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232 program or category that is authorized by the Medicaid state plan or waiver authority for
233 intergovernmental transfers.
234 (ii) "Intergovernmental transfer program" does not include the addition of a provider to
235 an existing intergovernmental transfer program.
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237 (i) a school district;
238 (ii) a charter school; or
239 (iii) the Utah Schools for the Deaf and the Blind.
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241 (i) federal assistance or other federal funds that are available from the federal
242 government that:
243 (A) the state is not currently receiving; or
244 (B) exceed the federal funds amount most recently approved by the Legislature by
245 more than 25% for a federal grant or program in which the state is currently participating;
246 (ii) a federal assistance program or other federal program in which the state is not
247 currently participating; or
248 (iii) a one-time TANF request.
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250 (i) the formal submission from an agency to the federal government:
251 (A) applying for or otherwise seeking to obtain new federal funds; or
252 (B) applying for or seeking to participate in a new federal program that will result in
253 federal funds being transferred to an agency; or
254 (ii) a one-time TANF request.
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256 Legislature or not, that the federal government requires Utah to expend as a condition for
257 receiving the federal funds or participating in the federal program.
258 (ii) "New state money" includes money expended to meet federal maintenance of effort
259 requirements.
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261 Workforce Services from its reserves of federal Temporary Assistance for Needy Families
262 funds:
263 (i) for a project or program that will last for a fixed amount of time and is not an
264 ongoing project or program of the Department of Workforce Services; and
265 (ii) that is greater than $1,000,000 over the amount most recently approved by the
266 Legislature.
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272 (m) "Qualifying federal funds" means federal funds that are:
273 (i) greater than 10% of the receiving entity's annual budget; or
274 (ii) greater than $2,000,000.
275 (n) "State" means the state of Utah and all of its agencies, and any administrative
276 subunits of those agencies.
277 (o) "State jurisdiction evaluation" means:
278 (i) a disclosure of:
279 (A) whether accepting the federal funds or participating in the federal program will
280 require the use of state funds or increase the administrative costs of the state or agency;
281 (B) the extent to which accepting the federal funds or participating in the federal
282 program will impair or impact the exclusive police power jurisdiction of the state to protect or
283 provide for the health, safety, welfare, and morals of the state; and
284 (C) the extent to which accepting the federal funds or participating in the federal
285 program will impair or impact the jurisdiction of the state over federal areas within the state;
286 and
287 (ii) to the extent that accepting the federal funds or participating in the federal program
288 will impair or impact the state's jurisdiction as described in Subsection (1)(o)(i)(B) or (C), an
289 identification of the constitutional authority supporting federal assertion of jurisdiction or
290 authority for the funding, program, or an associated regulation or restriction.
291 (2) When this chapter describes an employee as a "permanent full-time employee" or a
292 "permanent part-time employee," it is not intended to, and may not be construed to, affect the
293 employee's status as an at-will employee.
294 Section 3. Section 63J-5-103 is amended to read:
295 63J-5-103. Scope and applicability of chapter.
296 (1) Except as [
297 statute superseding provisions of this chapter by explicit reference to this chapter, the
298 provisions of this chapter apply to each agency and govern each federal funds request.
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330 received by the state if:
331 (a) the governor has declared a state of emergency; and
332 (b) the federal funds are received to assist victims of the state of emergency under
333 Section 53-2a-204.
334 Section 4. Section 63J-5-204 is amended to read:
335 63J-5-204. Legislative review and approval of certain federal funds requests.
336 (1) As used in this section:
337 (a) "High impact federal funds request" means a new federal funds request that will or
338 could:
339 (i) result in the state receiving total payments of $10,000,000 or more per year from the
340 federal government;
341 (ii) require the state to add 11 or more permanent full-time employees, 11 or more
342 permanent part-time employees, or combination of permanent full-time and permanent
343 part-time employees equal to 11 or more in order to receive the new federal funds or participate
344 in the new federal program; or
345 (iii) require the state to expend more than $1,000,000 of new state money in a fiscal
346 year in order to receive or administer the new federal funds or participate in the new federal
347 program.
348 (b) "Medium impact federal funds request" means a new federal funds request that will
349 or could:
350 (i) result in the state receiving total payments of more than $1,000,000 but less than
351 $10,000,000 per year from the federal government;
352 (ii) require the state to add more than zero but less than 11 permanent full-time
353 employees, more than zero but less than 11 permanent part-time employees, or a combination
354 of permanent full-time employees and permanent part-time employees equal to more than zero
355 but less than 11 in order to receive or administer the new federal funds or participate in the new
356 federal program; or
357 (iii) require the state to expend $1 to $1,000,000 of new state money in a fiscal year in
358 order to receive or administer the new federal funds or participate in the new federal program.
359 (2) (a) (i) Before obligating the state to accept or receive new federal funds or to
360 participate in a new federal program under a medium impact federal funds request that was not
361 authorized during a legislative session as provided in Section 63J-5-201, an agency shall:
362 (A) submit the federal funds request summary to the governor, the Judicial Council, or
363 the State Board of Education, as appropriate, for approval or rejection; and
364 (B) if the governor, the Judicial Council, or the State Board of Education approves the
365 new federal funds request, submit the federal funds request summary to the Legislative
366 Executive Appropriations Committee for its review and recommendations.
367 (ii) The procedures required under Subsection (2)(a)(i) shall be performed, if possible,
368 before the date that the medium impact funds request is formally submitted, but not later than
369 three months after the date of formal submission.
370 (b) The Legislative Executive Appropriations Committee shall review the federal funds
371 request summary and may:
372 (i) recommend that the agency accept the new federal funds;
373 (ii) recommend that the agency not accept the new federal funds; or
374 (iii) recommend to the governor that the governor call a special session of the
375 Legislature to review and approve or reject the acceptance of the new federal funds.
376 (3) (a) (i) Before obligating the state to accept or receive new federal funds or to
377 participate in a new federal program under a high impact federal funds request that was not
378 authorized during a legislative session as provided in Section 63J-5-201, an agency shall:
379 (A) submit the federal funds request summary to the governor, the Judicial Council, or
380 the State Board of Education, as appropriate, for approval or rejection; and
381 (B) if the governor, the Judicial Council, or the State Board of Education approves the
382 new federal funds request, submit the federal funds request summary to the Legislature for its
383 approval or rejection in an annual general session or a special session.
384 (ii) [
385 Subsection (3)(a)(i) shall be performed, if possible, before the date that the high impact funds
386 request is formally submitted, but not later than three months after the date of formal
387 submission.
388 (iii) For a high impact federal funds request for the Medical Assistance Program,
389 commonly known as Medicaid, or the Children's Health Insurance Program, the procedures
390 required under Subsection (3)(a)(i) shall be performed, if possible, before the date that the high
391 impact funds request is formally submitted, but not later than the end of the earlier of the next
392 annual general session or special session of the Legislature after the date of formal submission.
393 (b) (i) If the Legislature approves the new federal funds request, the agency may accept
394 the new federal funds or participate in the new federal program.
395 (ii) If the Legislature fails to approve the new federal funds request, the agency may not
396 accept the new federal funds or participate in the new federal program.
397 (4) If an agency fails to comply with the procedures of this section or fails to obtain the
398 Legislature's approval:
399 (a) the governor, the Judicial Council, or the State Board of Education, as appropriate,
400 may require the agency to withdraw the new federal funds request or refuse or return the new
401 federal funds;
402 (b) the Legislature may, if federal law allows, opt out or decline to participate in the
403 new federal program or decline to receive the new federal funds; or
404 (c) the Legislature may reduce the agency's General Fund appropriation in an amount
405 less than, equal to, or greater than the amount of federal funds received by the agency.
406 (5) If a letter or other official documentation awarding an agency a grant of federal
407 funds is not available to be included in the agency's federal funds request summary to the
408 governor, the Judicial Council, or the State Board of Education, as appropriate, under this
409 section, the agency shall submit to the governor, the Judicial Council, or the State Board of
410 Education, as appropriate, the letter or other official documentation awarding the agency a
411 grant of federal funds before expending the federal funds granted.
412 Section 5. Section 63J-5-301 is enacted to read:
413
414 63J-5-301. Definitions.
415 As used in this part:
416 (1) "Federal receipts" means the federal financial assistance, as defined in 31 U.S.C.
417 Sec. 7501, that is reported as part of a single audit.
418 (2) "Qualifying agency" means an agency that, in a single fiscal year, has federal
419 receipts composing more than 33% of the agency's total budget.
420 (3) "Single audit" means the same as that term is defined in 31 U.S.C. Sec. 7501.
421 Section 6. Section 63J-5-302 is enacted to read:
422 63J-5-302. Federal funds contingency plan.
423 (1) A qualifying agency shall prepare a federal funds contingency plan that meets the
424 requirements described in Subsection (2).
425 (2) A federal funds contingency plan shall:
426 (a) identify short-term and long-term risks to the agency if there is a reduction in the
427 amount or value of federal funds the agency receives;
428 (b) identify short-term and long-term strategies the agency may use to respond to the
429 risks described in Subsection (2)(a); and
430 (c) designate agency personnel who are responsible for implementing the strategies
431 described in Subsection (2)(b).
432 (3) A qualifying agency shall update the agency's federal funds contingency plan:
433 (a) at least every other year; and
434 (b) in any year in which the qualifying agency submits a new federal funds request that
435 exceeds $10,000,000.
436 (4) On or before December 31 of each year that a qualifying agency prepares a federal
437 funds contingency plan or an update to a federal funds contingency plan, the qualifying agency
438 shall provide a copy of the contingency plan or update to:
439 (a) the Governor's Office of Planning and Budget;
440 (b) the Executive Appropriations Committee; and
441 (c) the Legislative Fiscal Analyst.
442 Section 7. Repealer.
443 This bill repeals:
444 Section 63J-1-219, Definitions -- Federal receipts reporting requirements.
445 Section 63J-5-101, Title.
446 Section 8. Effective date.
447 This bill takes effect on May 1, 2024.