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H.B. 118
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QUASI-GOVERNMENTAL ENTITIES
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AMENDMENTS
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2000 GENERAL SESSION
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STATE OF UTAH
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Sponsor: David Ure
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AN ACT RELATING TO STATE AFFAIRS; AMENDING DEFINITIONS; CREATING THE
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LEGISLATIVE QUASI-GOVERNMENTAL ENTITIES COMMITTEE; ESTABLISHING
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DUTIES OF THAT COMMITTEE; PROVIDING A PROCESS FOR REVIEWING THE
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CREATION OF A QUASI-GOVERNMENTAL ENTITY; REMOVING REFERENCES TO THE
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LEGISLATIVE RETIREMENT COMMITTEE; AND MAKING TECHNICAL CHANGES.
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This act affects sections of Utah Code Annotated 1953 as follows:
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AMENDS:
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49-1-201, as last amended by Chapter 231, Laws of Utah 1996
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63-55b-163, as renumbered and amended by Chapter 21, Laws of Utah 1999
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63-95-101, as enacted by Chapter 152, Laws of Utah 1998
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63-95-102, as last amended by Chapter 76, Laws of Utah 1999
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ENACTS:
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63-95-201, Utah Code Annotated 1953
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63-95-202, Utah Code Annotated 1953
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63-95-301, Utah Code Annotated 1953
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63-95-302, Utah Code Annotated 1953
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RENUMBERS AND AMENDS:
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63-95-401, (Renumbered from 63-95-103, as enacted by Chapter 152, Laws of Utah 1998)
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63-95-402, (Renumbered from 63-95-104, as enacted by Chapter 152, Laws of Utah 1998)
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63-95-403, (Renumbered from 63-95-105, as enacted by Chapter 152, Laws of Utah 1998)
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Be it enacted by the Legislature of the state of Utah:
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Section 1.
Section
49-1-201
is amended to read:
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49-1-201. Establishment of retirement office -- An independent state agency --
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Adoption of programs and policies.
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(1) There is established the Utah State Retirement Office. The office shall administer the
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state retirement systems and perform all other functions assigned to it by law.
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(2) The office is an independent state agency. It is subject to legislative and executive
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department budgetary examination and comment.
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(3) The office shall be housed in Salt Lake City, but branches of the office may be
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established in other areas of the state upon approval of the board.
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(4) (a) The board is exempt from those acts which are applicable to state and other
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governmental entities under this code. [However,]
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(b) Notwithstanding Subsection (4)(a), the board shall:
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(i) adopt, where not in conflict with its trust and fiduciary responsibilities or other law,
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rules governing the operation of the retirement office [which] that are substantially similar to those
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governing other public agencies; and [shall]
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(ii) report [these] the rules[,] and any amendments to [them,] the rules adopted under
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Subsection (4)(b)(i) to the Legislative [Retirement] Quasi-Governmental Entities Committee on
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an annual basis or as otherwise requested by the Legislative Quasi-Governmental Entities
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Committee.
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Section 2.
Section
63-55b-163
is amended to read:
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63-55b-163. Repeal dates -- Title 63, Title 63D.
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(1) Title 63, Chapter 95, Parts 2 and 3 are repealed July 1, 2004.
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[(1)] (2) Sections
63-63b-101
and
63-63b-102
are repealed on July 1, 2002.
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[(2) Section
63D-1-301.6
is repealed January 1, 1999.]
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Section 3.
Section
63-95-101
is amended to read:
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CHAPTER 95. QUASI-GOVERNMENTAL ENTITIES ACT
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Part 1. General Provisions
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63-95-101. Title.
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This chapter [shall be] is known as the "[Privatization of] Quasi-Governmental Entities
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Act."
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Section 4.
Section
63-95-102
is amended to read:
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63-95-102. Definitions.
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For purposes of this chapter:
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(1) "Asset" means property of all kind, real and personal, tangible and intangible, and
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includes:
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(a) cash, except reasonable compensation or salary for services rendered;
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(b) stock or other investments;
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(c) goodwill;
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(d) real property;
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(e) an ownership interest;
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(f) a license;
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(g) a cause of action; and
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(h) any similar property.
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(2) "Authorizing statutes" means the statutes creating an entity as a quasi-governmental
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entity.
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(3) "Business interest" means:
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(a) holding the position of trustee, director, officer, or other similar position with a
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business entity; or
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(b) the ownership, either legally or equitably, of at least 10% of the outstanding shares of
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a corporation or 10% interest in any other business entity, being held by:
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(i) an individual;
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(ii) the individual's spouse;
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(iii) a minor child of the individual; or
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(iv) any combination of Subsections (3)(b)(i) through (iii).
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(4) "Committee" means the Legislative Quasi-Governmental Entities Committee created
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in Section
63-95-201
.
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(5) "Government requestor" means:
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(a) the governor;
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(b) an executive branch officer other than the governor;
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(c) an executive branch agency;
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(d) a legislator, including a legislative sponsor of legislation creating a quasi-governmental
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entity; or
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(e) a legislative committee.
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[(4)] (6) "Interested party" means a person that held or holds the position of trustee,
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director, officer, or other similar position with a quasi-governmental entity within:
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(a) five years prior to the date of an action described in Subsection [(6)] (8); or
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(b) during the privatization of a quasi-governmental entity.
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[(5)] (7) "Lobbyist" is a person that provided or provides services as a lobbyist, as defined
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in Section
36-11-102
, within:
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(a) five years prior to the date of an action described in Subsection [(6)] (8); or
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(b) during the privatization of a quasi-governmental entity.
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[(6)] (8) (a) "Privatized" means an action described in Subsection [(6)] (8)(b) taken under
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circumstances in which the operations of the quasi-governmental entity are continued by a
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successor entity that:
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(i) is privately owned;
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(ii) is unaffiliated to the state; and
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(iii) receives any asset of the quasi-governmental entity.
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(b) An action referred to in Subsection [(6)] (8)(a) includes:
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(i) the repeal of the authorizing statute of a quasi-governmental entity and the revision to
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state laws to terminate the relationship between the state and the quasi-governmental entity;
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(ii) the dissolution of the quasi-governmental entity;
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(iii) the merger or consolidation of the quasi-governmental entity with another entity; or
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(iv) the sale of all or substantially all of the assets of the quasi-governmental entity.
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[(7)] (9) (a) "Quasi-governmental entity" means [the] an entity that:
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(i) is created by the state or is given by the state the right to exist and conduct its affairs
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as a quasi-governmental entity:
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(A) to serve a public purpose; and
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(B) to meet a need that cannot be met through a private business; and
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(ii) is designated by the state as:
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(A) an independent state agency;
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(B) an independent public corporation;
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(C) a quasi-public corporation; or
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(D) a term similar to that described in Subsections (9)(a)(iv)(A) through (C).
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(b) "Quasi-governmental entity" includes the:
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[(a)] (i) Dairy Commission created in Title 4, Chapter 22, Dairy Promotion Act;
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[(b)] (ii) Utah Technology Finance Corporation created in Title 9, Chapter 13, Utah
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Technology and Small Business Finance Act;
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[(c)] (iii) Heber Valley Railroad Authority created in Title 9, Chapter 3, Part 3, Heber
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Valley Historic Railroad Authority;
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[(d)] (iv) Utah Science Center Authority created in Title 9, Chapter 3, Part 4, Utah Science
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Center Authority;
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[(e)] (v) Utah Housing Finance Agency created in Title 9, Chapter 4, Part 9, Utah Housing
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Finance Agency;
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[(f)] (vi) Utah State Fair Corporation created in Title 9, Chapter 4, Part 11, Utah State Fair
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Corporation Act;
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[(g)] (vii) Workers' Compensation Fund of Utah created in Title 31A, Chapter 33,
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Workers' Compensation Fund of Utah;
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[(h)] (viii) Utah State Retirement Office created in Title 49, Chapter 1, Part 2, Retirement
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Office and Board;
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[(i)] (ix) School and Institutional Trust Lands Administration created in Title 53C, Chapter
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1, Part 2, School and Institutional Trust Lands Administration; and
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[(j) Crime Victims' Reparations Office created in Title 63, Chapter 25a, Part 4, Crime
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Victims' Reparations Act; and]
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[(k)] (x) Utah Communications Agency Network created in Title 63C, Chapter 7, Utah
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Communications Agency Network Act.
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(c) Notwithstanding Subsection (9)(a), "quasi-governmental entity" does not include:
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(i) the Public Service Commission of Utah created in Section
54-1-1
;
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(ii) an institution within the state system of higher education;
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(iii) a city, county, or town;
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(iv) a local school district; or
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(v) a special district created under the authority of Title 17A, Special Districts.
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Section 5.
Section
63-95-201
is enacted to read:
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Part 2. Legislative Committee
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63-95-201. Legislative Quasi-Governmental Entities Committee creation.
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(1) There is created a Legislative Quasi-Governmental Entities Committee composed of
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13 legislators appointed as follows:
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(a) four senators, appointed by the president of the Senate, with at least one senator from
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the minority party; and
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(b) nine representatives, appointed by the speaker of the House of Representatives, with
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at least two representatives from the minority party.
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(2) (a) The president of the Senate shall designate one of the Senate appointees as a cochair
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of the committee.
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(b) The speaker of the House of Representatives shall designate one of the House of
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Representatives appointees as a cochair of the committee.
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(3) Committee members serve for two years, but may be reappointed by the speaker or the
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president.
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(4) The committee shall meet at least twice each year, but may meet more frequently if the
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chairs determine that additional meetings are needed.
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(5) In conducting all of its business, the committee shall comply with the rules of
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legislative interim committees.
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(6) The Office of Legislative Research and General Counsel shall provide staff services
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to the committee.
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(7) Salaries and expenses of legislative committee members shall be paid in accordance
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with:
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(a) Section
36-2-2
; and
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(b) Legislative Joint Rule 15.03.
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Section 6.
Section
63-95-202
is enacted to read:
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63-95-202. Duties of the committee.
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(1) The committee shall:
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(a) study the scope of this chapter and determine what entities should be treated under this
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chapter as quasi-governmental entities;
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(b) study the provisions of the Utah Code that govern each quasi-governmental entity
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including whether or not there should be consistency in these provisions;
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(c) study what provisions of the Utah Code, if any, from which each quasi-governmental
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entity should be exempted;
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(d) study whether or not the state should receive services from or provide services to each
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quasi-governmental entity;
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(e) request and hear reports from each quasi-governmental entity;
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(f) review the annual audit of each quasi-governmental entity that is performed in
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accordance with the statutes governing the quasi-governmental entity;
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(g) comply with Part 3, Creation of Quasi-Governmental Entity, in reviewing a proposal
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to create a new quasi-governmental entity;
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(h) if the committee recommends dissolution of a quasi-governmental entity as provided
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in Subsection (2) and subject to Part 4, Privatization of Quasi-Governmental Entities, recommend
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the appropriate method of dissolving the quasi-governmental entity;
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(i) study the following concerning a private corporation that by statute is authorized to
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provide services to the state to meet a public purpose, including the This is the Place Foundation,
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with which the Division of Parks and Recreation is authorized in Section
63-11-3.2
to make an
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agreement to manage, develop, and promote This is the Place State Park:
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(i) whether or not a private corporation should be subject to this chapter;
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(ii) whether or not the state should receive services from or provide services to the private
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corporation;
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(iii) reporting and audit requirements for the private corporation; and
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(iv) the need, if any, to modify statutes related to the private corporation;
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(j) study the following concerning an entity created by local agreement under Title 11,
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Chapter 13, Interlocal Cooperation Act, if the state is a party to the agreement creating the entity:
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(i) whether or not the entity should be subject to this chapter;
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(ii) whether or not the state should receive services from or provide services to the entity;
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(iii) reporting and audit requirements for the entity; and
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(iv) the need, if any, to modify statutes related to the entity; and
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(k) report annually to the Legislative Management Committee by no later than the
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Legislative Management Committee's November meeting.
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(2) The committee may:
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(a) establish a form for any report required under Subsection (1);
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(b) recommend to the Legislature that a quasi-governmental entity be dissolved;
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(c) advise the Legislature concerning issues involving quasi-governmental entities; and
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(d) study issues related to the implementation of Title 49, Utah State Retirement Act.
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Section 7.
Section
63-95-301
is enacted to read:
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Part 3. Creation of a Quasi-Governmental Entity
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63-95-301. Review by committee required for creating a quasi-governmental entity.
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(1) If a government requestor proposes that the Legislature create a quasi-governmental
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entity, that government requestor shall request that the committee review the proposal.
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(2) After receiving a request for review under Subsection (1), the chairs of the committee:
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(a) shall schedule a meeting of the committee to review the proposal; and
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(b) may request information from executive and legislative branch entities and officers
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concerning the proposal including:
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(i) whether or not the proposed quasi-governmental entity should be exempt from any state
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statute;
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(ii) the need for oversight of the proposed quasi-governmental entity by an executive
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branch agency;
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(iii) the need for and requirements of audits of the proposed quasi-governmental entity;
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(iv) the custody of the proposed quasi-governmental entity's funds;
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(v) the legal representation of the proposed quasi-governmental entity;
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(vi) whether or not the state should receive services from or provide services to the
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proposed quasi-governmental entity; and
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(vii) the legal liability, if any, to the state if the proposed quasi-governmental entity is
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created.
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(3) In requesting information from executive and legislative branch entities or officers
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under Subsection (2), the committee should specifically consider seeking information from:
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(a) the state auditor;
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(b) the state treasurer;
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(c) the attorney general;
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(d) the risk manager; and
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(e) the executive director of the Department of Administrative Services.
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Section 8.
Section
63-95-302
is enacted to read:
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63-95-302. Recommendations of the committee.
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After the committee has reviewed a proposal to create a quasi-governmental entity in
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accordance with Section
63-95-301
, the committee shall make a report to the Legislature stating
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whether the committee:
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(1) recommends creation of the proposed quasi-governmental entity;
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(2) recommends that the proposed quasi-governmental entity not be created; or
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(3) makes no recommendation regarding the creation of the proposed quasi-governmental
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entity.
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Section 9.
Section
63-95-401
, which is renumbered from Section 63-95-103 is renumbered
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and amended to read:
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Part 4. Privatization of Quasi-Governmental Entities
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[63-95-103]. 63-95-401. Benefits to interested parties of a quasi-governmental
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entity.
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(1) If a quasi-governmental entity is privatized, the following may not receive any benefit
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prohibited under Subsection (2):
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(a) an interested party of the quasi-governmental entity;
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(b) an entity in which an interested party holds a business interest;
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(c) a lobbyist of the quasi-governmental entity; or
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(d) an entity in which a lobbyist of the quasi-governmental entity holds a business interest.
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(2) If a quasi-governmental entity is privatized:
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(a) a person described in Subsection (1)(a) or (b) may not receive:
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(i) compensation from a quasi-governmental entity that is conditioned in whole or in part
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on:
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(A) the passage, defeat, or amendment of legislative action related to privatization; or
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(B) the approval, modification, or denial of an executive action related to privatization;
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or
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(ii) any asset of the quasi-governmental entity or its successor; and
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(b) a person described in Subsection (1)(c) or (d) may not receive any:
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(i) compensation that if received by the lobbyist would be in violation of Section
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36-11-301
; or
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(ii) asset of the quasi-governmental entity or its successor.
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Section 10.
Section
63-95-402
, which is renumbered from Section 63-95-104 is
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renumbered and amended to read:
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[63-95-104]. 63-95-402. Privatization process -- Audit.
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(1) If a quasi-governmental entity seeks to privatize the quasi-governmental entity, it shall:
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(a) submit to the Legislature recommended legislation to:
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(i) repeal the authorizing statute and revise state law as necessary to terminate its
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relationship to the state; and
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(ii) address the value of any interests the state holds in the quasi-governmental entity and
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whether the state should receive compensation for those interests as part of privatization; and
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(b) be audited by the state auditor:
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(i) within one year prior to the effective date of legislation that repeals the authorizing
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statute to terminate the relationship between the quasi-governmental entity and the state; and
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(ii) to determine the amount, nature, and source of revenues and assets of the
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quasi-governmental entity.
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(2) The relationship between the state and a quasi-governmental entity may not be
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terminated except by the repeal of the authorizing statute of the quasi-governmental entity.
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Section 11.
Section
63-95-403
, which is renumbered from Section 63-95-105 is
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renumbered and amended to read:
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[63-95-105]. 63-95-403. Penalties for violation.
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(1) A person who knowingly violates this [chapter] part:
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(a) is guilty of a third degree felony if the combined value of any compensation or assets
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received by the person as a result of the violation is equal to or greater than $10,000; or
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(b) is guilty of a class A misdemeanor if the combined value of any compensation or assets
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received by the person as a result of the violation is less than $10,000.
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(2) (a) In addition to any penalty imposed under Subsection (1), a person that violates this
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[chapter] part shall return to the successor of the quasi-governmental entity any compensation or
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assets received in violation of this [chapter] part.
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(b) If the assets received by the person in violation of this [chapter] part are no longer in
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the possession of the person, the person shall pay the successor of the quasi-governmental entity
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an amount equal to the fair market value of the asset at the time the person received the asset.
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(3) Notwithstanding Subsection
36-11-401
(3)(a), if a lobbyist violates Subsection
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[
63-95-103
]
63-95-401
(2)(b)(i), the lobbyist is guilty the crime outlined in Subsection (1), which
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crime shall be determined by the value of compensation or assets received by the lobbyist.
Legislative Review Note
as of 2-1-00 8:28 AM
A limited legal review of this legislation raises no obvious constitutional or statutory concerns.