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H.B. 173
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6 This act modifies provisions governing state settlement agreements. This act renumbers
7 sections, differentiates between purely financial settlement agreements and those requiring
8 state action, and requires gubernatorial and legislative approval for certain settlement
9 agreements requiring state action. This act authorizes the governor or the Legislature to
10 void settlement agreements lacking proper approval. This act requires the attorney general
11 to report the state's potential financial and legal exposure to the Legislative Management
12 Committee.
13 This act affects sections of Utah Code Annotated 1953 as follows:
14 AMENDS:
15 63-38b-101, as last amended by Chapter 375, Laws of Utah 1997
16 63-38b-102, as enacted by Chapter 313, Laws of Utah 1995
17 67-5-1, as last amended by Chapters 212 and 316, Laws of Utah 2000
18 ENACTS:
19 63-38b-301, Utah Code Annotated 1953
20 63-38b-302, Utah Code Annotated 1953
21 63-38b-303, Utah Code Annotated 1953
22 RENUMBERS AND AMENDS:
23 63-38b-201, (Renumbered from 63-38b-103, as enacted by Chapter 313, Laws of Utah
24 1995)
25 63-38b-202, (Renumbered from 63-38b-104, as last amended by Chapter 41, Laws of Utah
26 2001)
27 63-38b-401, (Renumbered from 63-38b-105, as enacted by Chapter 41, Laws of Utah
28 2001)
29 Be it enacted by the Legislature of the state of Utah:
30 Section 1. Section 63-38b-101 is amended to read:
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32 63-38b-101. Definitions.
33 As used in this chapter:
34 (1) (a) "Action settlement agreement" includes a stipulation, consent decree, settlement
35 agreement, or any other legally binding document or representation that resolves a threatened or
36 pending lawsuit between the state and another party by requiring the state to take legally binding
37 action.
38 (b) "Action settlement agreement" includes stipulations, consent decrees, settlement
39 agreements, and other legally binding documents or representations resolving a dispute between
40 the state and another party when the state is required to pay money and required to take legally
41 binding action.
42 (c) "Action settlement agreement" does not include:
43 (i) the internal process established by the Department of Transportation to resolve
44 construction contract claims;
45 (ii) adjudicative orders issued by the State Tax Commission, the Public Service
46 Commission, the Labor Commission, or the Department of Workforce Services; or
47 (iii) the settlement of disputes arising from audits, defaults, or breaches of permits,
48 contracts of sale, easements, or leases by the School and Institutional Trust Lands Administration.
49 [
50 institution, officer, corporation, fund, division, office, committee, authority, laboratory, library,
51 unit, bureau, panel, or other administrative unit of the state.
52 (b) "Agency" includes the legislative branch, the judicial branch, the attorney general's
53 office, the State Office of Education, the Board of Regents, the institutional councils of each higher
54 education institution, and each higher education institution.
55 (3) (a) "Financial settlement agreement" [
56 settlement agreement, and any other legally binding document or representation that resolves a
57 dispute between the state and another party exclusively by requiring the payment of money from
58 one party to the other.
59 (b) "Financial settlement agreement" does not [
60 (i) the internal process established by the Department of Transportation to resolve
61 construction contract claims;
62 (ii) adjudicative orders issued by the State Tax Commission, Public Service Commission,
63 Labor Commission, or the Department of Workforce Services; or
64 (iii) the settlement of disputes arising from audits, defaults, or breaches of permits,
65 contracts of sale, easements, or leases by the School and Institutional Trust Lands Administration.
66 [
67 Section 2. Section 63-38b-102 is amended to read:
68 63-38b-102. Notice of voidableness of settlement agreements.
69 Each financial settlement agreement that might cost government entities more than
70 $100,000 that is executed by an agency in violation of this chapter, and each action settlement
71 agreement that is executed by an agency in violation of this chapter, is voidable by the governor
72 [
73 Section 3. Section 63-38b-201 , which is renumbered from Section 63-38b-103 is
74 renumbered and amended to read:
75
76 [
77 (1) Before legally binding the state by executing a financial settlement agreement that
78 might cost government entities more than $100,000 to implement, an agency shall submit the
79 proposed financial settlement agreement to the governor for his approval or rejection.
80 (2) The governor shall approve or reject each financial settlement agreement.
81 (3) (a) If the governor approves the financial settlement agreement, the agency may
82 execute the agreement.
83 (b) If the governor rejects the financial settlement agreement, the agency may not execute
84 the agreement.
85 (4) If an agency executes a financial settlement agreement without obtaining the governor's
86 approval under this section, the governor may issue an executive order declaring the settlement
87 agreement void.
88 Section 4. Section 63-38b-202 , which is renumbered from Section 63-38b-104 is
89 renumbered and amended to read:
90 [
91 agreements.
92 (1) (a) Before legally binding the state by executing a financial settlement agreement that
93 might cost government entities more than $500,000 to implement, an agency shall:
94 (i) submit the proposed financial settlement agreement to the governor for his approval or
95 rejection as required by Section 63-38b-103 ; and
96 (ii) if the governor approves the financial settlement agreement, submit the financial
97 settlement agreement to the Legislative Management Committee for its review and
98 recommendations.
99 (b) The Legislative Management Committee shall review the financial settlement
100 agreement and may:
101 (i) recommend that the agency execute the financial settlement agreement;
102 (ii) recommend that the agency reject the financial settlement agreement; or
103 (iii) recommend to the governor that he call a special session of the Legislature to review
104 and approve or reject the financial settlement agreement.
105 (2) (a) Before legally binding the state by executing a financial settlement agreement that
106 might cost government entities more than $1,000,000 to implement, an agency shall:
107 (i) submit the proposed financial settlement agreement to the governor for his approval or
108 rejection as required by Section [
109 (ii) if the governor approves the financial settlement agreement, submit the financial
110 settlement agreement to the Legislature for its approval in an annual general session or a special
111 session.
112 (b) (i) If the Legislature approves the financial settlement agreement, the agency may
113 execute the agreement.
114 (ii) If the Legislature rejects the financial settlement agreement, the agency may not
115 execute the agreement.
116 (c) If an agency executes a financial settlement agreement without obtaining the
117 Legislature's approval under this Subsection (2):
118 (i) the governor may issue an executive order declaring the settlement agreement void; or
119 (ii) the Legislature may pass a joint resolution declaring the settlement agreement void.
120 Section 5. Section 63-38b-301 is enacted to read:
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122 63-38b-301. Cost evaluation of action settlement agreements.
123 (1) Before legally binding the state to an action settlement agreement that might cost the
124 state a total of $100,000 or more to implement, an agency shall estimate the cost of implementing
125 the action settlement agreement and submit that cost estimate to the governor and the Legislative
126 Management Committee.
127 (2) The Legislative Management Committee may:
128 (a) direct its staff to make an independent cost estimate of the cost of implementing the
129 action settlement agreement; and
130 (b) affirmatively adopt a cost estimate as the benchmark for determining which
131 authorizations established by this part are necessary.
132 (3) If an agency executes an action settlement agreement without obtaining the
133 Legislature's approval under Subsection (2):
134 (a) the governor may issue an executive order declaring the action settlement agreement
135 void; or
136 (b) the Legislature may pass a joint resolution declaring the action settlement agreement
137 void.
138 Section 6. Section 63-38B-302 is enacted to read:
139 63-38b-302. Governor to approve action settlement agreements.
140 (1) Before legally binding the state by executing an action settlement agreement that might
141 cost government entities more than $100,000 to implement, an agency shall submit the proposed
142 settlement agreement to the governor for his approval or rejection.
143 (2) The governor shall approve or reject each action settlement agreement.
144 (3) (a) If the governor approves the action settlement agreement, the agency may execute
145 the agreement.
146 (b) If the governor rejects the action settlement agreement, the agency may not execute the
147 agreement.
148 (4) If an agency executes an action settlement agreement without obtaining the governor's
149 approval under this section, the governor may issue an executive order declaring the settlement
150 agreement void.
151 Section 7. Section 63-38B-303 is enacted to read:
152 63-38b-303. Legislative review and approval of action settlement agreements.
153 (1) (a) Before legally binding the state by executing an action settlement agreement that
154 might cost government entities more than $500,000 to implement, an agency shall:
155 (i) submit the proposed action settlement agreement to the governor for his approval or
156 rejection as required by Section 63-38b-302 ; and
157 (ii) if the governor approves the action settlement agreement, submit the action settlement
158 agreement to the Legislative Management Committee for its review and recommendations.
159 (b) The Legislative Management Committee shall review the action settlement agreement
160 and may:
161 (i) recommend that the agency execute the settlement agreement;
162 (ii) recommend that the agency reject the settlement agreement; or
163 (iii) recommend to the governor that he call a special session of the Legislature to review
164 and approve or reject the settlement agreement.
165 (2) (a) Before legally binding the state by executing an action settlement agreement that
166 might cost government entities more than $1,000,000 to implement, an agency shall:
167 (i) submit the proposed action settlement agreement to the governor for his approval or
168 rejection as required by Section 63-38b-302 ; and
169 (ii) if the governor approves the action settlement agreement, submit the action settlement
170 agreement to the Legislature for its approval in an annual general session or a special session.
171 (b) (i) If the Legislature approves the action settlement agreement, the agency may execute
172 the agreement.
173 (ii) If the Legislature rejects the action settlement agreement, the agency may not execute
174 the agreement.
175 (c) If an agency executes an action settlement agreement without obtaining the
176 Legislature's approval under this Subsection (2):
177 (i) the governor may issue an executive order declaring the action settlement agreement
178 void; or
179 (ii) the Legislature may pass a joint resolution declaring the action settlement agreement
180 void.
181 Section 8. Section 63-38b-401 , which is renumbered from Section 63-38b-105 is
182 renumbered and amended to read:
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185 Department of Transportation.
186 (1) Notwithstanding the provisions of this chapter, the Department of Transportation need
187 not obtain the approval of the governor or the Legislature in financial or action settlement
188 agreements resolving condemnation cases.
189 (2) [
190 $1,000,000 to $2,000,000 over the Department of Transportation's original appraisal shall be
191 presented to the Transportation Commission for approval or rejection.
192 (3) (a) [
193 more than $2,000,000 over the Department of Transportation's original appraisal and all action
194 settlement agreements shall be presented:
195 (i) to the Transportation Commission for approval or rejection; and
196 (ii) if the financial or action settlement agreement is approved by the Transportation
197 Commission, to the Legislative Management Committee.
198 (b) The Legislative Management Committee may recommend approval or rejection of the
199 financial or action settlement agreement.
200 (4) (a) The Department of Transportation may not enter into a financial settlement
201 agreement that resolves a condemnation case and requires payment of $1,000,000 to $2,000,000
202 over the Department of Transportation's original appraisal until the Transportation Commission
203 has approved the agreement.
204 (b) The Department of Transportation may not enter into a financial settlement agreement
205 that resolves a condemnation case and requires payment of more than $2,000,000 over the
206 Department of Transportation's original appraisal or enter into an action settlement agreement
207 until:
208 (i) the Transportation Commission has approved the agreement; and
209 (ii) the Legislative Management Committee has reviewed [
210 Section 9. Section 67-5-1 is amended to read:
211 67-5-1. General duties.
212 The attorney general shall:
213 (1) perform all duties in a manner consistent with the attorney-client relationship under
214 Section 67-5-17 ;
215 (2) except as provided in Sections 10-3-928 and 17-18-1 , attend the Supreme Court and
216 the Court of Appeals of this state, and all courts of the United States, and prosecute or defend all
217 causes to which the state, or any officer, board, or commission of the state in an official capacity
218 is a party; and take charge, as attorney, of all civil legal matters in which the state is interested;
219 (3) after judgment on any cause referred to in Subsection (2), direct the issuance of process
220 as necessary to execute the judgment;
221 (4) account for, and pay over to the proper officer, all moneys that come into the attorney
222 general's possession that belong to the state;
223 (5) keep a file of all cases in which the attorney general is required to appear, including
224 any documents and papers showing the court in which the cases have been instituted and tried, and
225 whether they are civil or criminal, and:
226 (a) if civil, the nature of the demand, the stage of proceedings, and when prosecuted to
227 judgment, a memorandum of the judgment and of any process issued whether satisfied, and if not
228 satisfied, the return of the sheriff;
229 (b) if criminal, the nature of the crime, the mode of prosecution, the stage of proceedings,
230 and when prosecuted to sentence, a memorandum of the sentence and of the execution, if the
231 sentence has been executed, if not executed, of the reason of the delay or prevention; and
232 (c) deliver this information to the attorney general's successor in office;
233 (6) exercise supervisory powers over the district and county attorneys of the state in all
234 matters pertaining to the duties of their offices, and from time to time require of them reports of
235 the condition of public business entrusted to their charge;
236 (7) give the attorney general's opinion in writing and without fee to the Legislature or
237 either house, and to any state officer, board, or commission, and to any county attorney or district
238 attorney, when required, upon any question of law relating to their respective offices;
239 (8) when required by the public service or directed by the governor, assist any district or
240 county attorney in the discharge of his duties;
241 (9) purchase in the name of the state, under the direction of the state Board of Examiners,
242 any property offered for sale under execution issued upon judgments in favor of or for the use of
243 the state, and enter satisfaction in whole or in part of the judgments as the consideration of the
244 purchases;
245 (10) when the property of a judgment debtor in any judgment mentioned in Subsection (9)
246 has been sold under a prior judgment, or is subject to any judgment, lien, or encumbrance taking
247 precedence of the judgment in favor of the state, redeem the property, under the direction of the
248 state Board of Examiners, from the prior judgment, lien, or encumbrance, and pay all money
249 necessary for the redemption, upon the order of the state Board of Examiners, out of any money
250 appropriated for these purposes;
251 (11) when in his opinion it is necessary for the collection or enforcement of any judgment,
252 institute and prosecute on behalf of the state any action or proceeding necessary to set aside and
253 annul all conveyances fraudulently made by the judgment debtors, and pay the cost necessary to
254 the prosecution, when allowed by the state Board of Examiners, out of any money not otherwise
255 appropriated;
256 (12) discharge the duties of a member of all official boards of which the attorney general
257 is or may be made a member by the Utah Constitution or by the laws of the state, and other duties
258 prescribed by law;
259 (13) institute and prosecute proper proceedings in any court of the state or of the United
260 States, to restrain and enjoin corporations organized under the laws of this or any other state or
261 territory from acting illegally or in excess of their corporate powers or contrary to public policy,
262 and in proper cases forfeit their corporate franchises, dissolve the corporations, and wind up their
263 affairs;
264 (14) institute investigations for the recovery of all real or personal property that may have
265 escheated or should escheat to the state, and for that purpose, subpoena any persons before any of
266 the district courts to answer inquiries and render accounts concerning any property, examine all
267 books and papers of any corporations, and when any real or personal property is discovered that
268 should escheat to the state, institute suit in the district court of the county where the property is
269 situated for its recovery, and escheat that property to the state;
270 (15) administer the Children's Justice Center as a program to be implemented in various
271 counties pursuant to Sections 67-5b-101 through 67-5b-107 ;
272 (16) assist the Constitutional Defense Council as provided in Title 63C, Chapter 4,
273 Constitutional Defense Council;
274 (17) investigate and prosecute criminal violations of Title 26, Chapter 20, False Claims
275 Act, in accordance with Section 26-20-13 ; [
276 (18) investigate and prosecute complaints of abuse, neglect, or exploitation of patients at
277 health care facilities that receive payments under the state Medicaid program[
278 (19) (a) report twice a year to the Legislative Management Committee on any pending or
279 anticipated lawsuits, other than eminent domain lawsuits, that might:
280 (i) cost the state more than $500,000; or
281 (ii) require the state to take legally binding action; and
282 (b) include in that report, an estimate of the state's potential financial or other legal
283 exposure.
Legislative Review Note
as of 1-24-02 9:18 AM
A limited legal review of this legislation raises no obvious constitutional or statutory concerns.