such as the Salt Lake County Water Conservancy District, nominations come from either the
cities within the district or the county commission. The nominations are given to the governor
who makes the appointment with the advise and consent of the Senate. Mr. Ovard indicated that
generally the conservancy district agrees with the policy statements. He stated there needs to be
some guidelines to determine when special districts should be created.
Mr. Eckhard Bauer, Office of the State Auditor, indicated that special service districts are
not all the same. He expressed concern over what would happen with bonding or tax rates if
special district requirements are standardized.
Mr. Rex Ausburn, Manager of the Snyderville Basin Sewer Improvement District,
observed that at no time have any of the problems being discussed been totally associated with
either the district being an independent or dependent district. The problems also have not been
indicative of having an elected or appointed board. If the law is changed, it would reduce the
flexibility that the cities and counties may need to help accomplish what their district is being
asked to do. He offered his assistance to help identify solutions.
Mr. Jan Furner, Utah Association of Special Districts, indicated that they are willing to
participate in the process. He pointed out that special districts are not visible because they were
created that way.
Mr. Rees briefly reviewed a comparison of statutory governing body provisions
concerning special districts which was mailed to the members. He distributed a list of policy
issues for the committee to consider regarding independent special districts.
Rep. Ure recommended an ad hoc workgroup be formed to address the specific issues.
Rep. Dillree suggested that those who previously served on the Special Districts Subcommittee
also serve on the workgroup since they already have the necessary background.
4. Waiver of Governmental Immunity for Perjury by a Government Employee - Rep. Curtis explained that during the 1998 General Session, he introduced H.B. 97, Governmental
Immunity Amendments. The legislation would have waived governmental immunity from
actions seeking damages resulting from the perjury, the intentional making of a false statement,
or the making of a false statement with reckless regard as to its truthfulness, by a government
employee in any court or administrative hearing. In order to fine tune the language, he withdrew
the legislation and requested the issue be studied during the interim.
Mr. Matt Hilton, attorney, noted that the U.S. Supreme Court has said if someone
commits perjury in a courtroom as a witness, it is not actionable as a civil rights claim. The
Government Immunity Act states that if the state government or a municipality deprives an
individual of their civil rights, it is not actionable either. The Tenth Circuit Court of Appeals has
ruled that a conspiracy to commit perjury is immune from damages under the Civil Rights Act.
He said he has been involved in litigation where it was evident that a person in authority
committed perjury. He briefly discussed a situation in Springville concerning the forgery of a
government official on a plat. He stated there are times where it is necessary to facilitate
addressing issues quickly and directly. That is the purpose of the proposed legislation.
Rep. Curtis requested the committee consider the legislation from a conceptual point of
view and determine if language can be drafted to address the problems. He asked if the
Legislature would want to grant immunity to individuals or entities when false statements are
intentionally made. The proposed concept simplifies the procedure and expands the liability of
governmental entities for perjured or false statements.
Mr. Steve Allred, head of the Litigation Department for Salt Lake City, said the federal
law provides that if actions are done under color of authority and violative of someone's due
process rights, they are actionable. The proposed legislation makes the employer strictly liable
whether they were aware of the situation in question or not. Everything the bill intends to do is
already permitted under federal civil rights litigation that can take place in either federal or state
courts. He indicated the legislation is probably procedurally more difficult than the federal civil
rights act. It would force him to represent an employee who may have done something wrong.
Ms. Ruth Robinson, citizen, said in her personal situation, in order to justify her arrest,
several issues were put in the police report that are not valid and are slanderous. Individuals
need to be held responsible for making false statements against a person.
Rep. Ure suggested Rep. Curtis file the proposed legislation and bring it back before the
committee for further discussion.
MOTION: Rep. Dillree moved to approve the minutes of June 17, 1998. The motion passed unanimously. Sen. Blackham and Rep. Walsh were absent during the vote.
MOTION: Rep. Dillree moved that the full interim committee adopt draft legislation, "City Forms of Government," as a committee bill. The motion passed unanimously. Sen.
Blackham was absent during the vote. (According to legislative rules, since Sen. Mantes has
missed two consecutive meetings, only one senator was needed for a quorum.)
5. Legislative Audit - Utah Technology Finance Corporation (UTFC) - Ms. Janice Coleman, Office of Legislative Auditor, explained that the Legislature asked them to look at
three issues: 1) Is UTFC meeting its statutory mission? 2) Does UTFC have effective internal
controls? and 3) Do the allegations that have been made against UTFC have any merit? She
indicated that in their opinion UTFC is moving away from primary aspects of its mission,
notably the funding of startup or early stage high-technology companies. Ms. Coleman stated
UTFC may have moved away from primary aspects of its mission as a result of legislative
pressure. There has been informal pressure to become self-sufficient and to give more loans to
rural companies. The Legislature should take this opportunity to consider what UTFC's mission
should be now and make the necessary changes and clarifications to the Utah Code. She added
they found that UTFC's operating efficiency also appears to be declining.
Sen. Evans declared a conflict of interest and stated his wife works for a high-tech
company, although he did not think they were directly involved with UTFC.
Ms. Coleman recommended the Legislature clarify its position on the State Personnel
Management Act. Currently UTFC is not exempted in the code from the act.
Mr. Wayne Welsh, Legislative Auditor, observed that there may be some benefit from
having UTFC exempted but it should not be exempted from following good personnel practices
that other organizations have to follow. Mr. Welsh stated there are some things that should be
clarified regarding UTFC's role and mission. Some of their role could be privatized or taken into
state government through existing agencies.
Mr. Duane Blackley, Acting UTFC Executive Director, stated as acting director, his
efforts have been substantially towards restructuring UTFC's policies and procedures and
mission and purpose. He distributed examples of what UTFC has done in establishing
appropriate policies and procedures. He said that each of the recommendations have been
carefully evaluated and incorporated into the system. One of the areas they had particular
concern with dealt with employee relations. A new employee manual has been created and they
have eliminated a category called compensatory time off. UTFC no longer allows cashing of
vacation at any time during an individual's employment. Conflict of interest policies have been
expanded to require affirmative disclosure by employees and board members. Policy now
requires advance approval of out of state travel by any member. UTFC has reduced expense
categories by $950,000. Many programs that were nonrevenue related have been eliminated.
Ms. Clair Geddes, United We Stand, distributed copies of two newspaper articles
regarding UTFC. She said she has been following the agency since 1993. A few years ago she
met with the former executive director, Don Welti, who assured her that the problems from the
past would not happen again. She has tried to bring the problems associated with UTFC to the
attention of the Legislature for the last several years.
MOTION: Rep. Dillree moved to adjourn the meeting at 5:05 p.m. The motion passed unanimously.