Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 392 (2016GS)

Sponsor

Rep. Sanpei, D.

Final action

Governor Signed 3/23/2016

Outcome

Became law — signed by Gov. Gary R. Herbert

Summary

What it does

• This bill:
• modifies reporting requirements for the Department of Health;
• removes reporting requirements for the Department of Workforce Services and the Women in the Economy Commission;
• removes reporting requirements for the Revenue and Taxation Interim Committee;
• modifies reporting requirements for the inspector general of Medicaid;
• modifies reporting requirements for the Department of Natural Resources;
• removes reduction in funds reporting requirements for state agencies;
• requires certain reports to be electronic;
• removes reporting requirements for the Division of Finance on highway general obligation bonds;
• creates reporting requirements for the Department of Transportation regarding payoff of highway general obligation bonds;
• removes the Division of Finance's report of general obligation bonds;
• removes the Department of Transportation's report of prioritized projects and modifies other reporting requirements for the department; and
• requires the attorney general's annual report to be electronic.

Every vote on this bill

Bill text

EXECUTIVE APPROPRIATIONS COMMITTEE REPORT
AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Dean Sanpei
Senate Sponsor: 
Lyle W. Hillyard
LONG TITLE
General Description:
This bill modifies reporting requirements to the Executive Appropriations Committee.
Highlighted Provisions:
This bill:
▸ modifies reporting requirements for the Department of Health;
▸ removes reporting requirements for the Department of Workforce Services and the
Women in the Economy Commission;
▸ removes reporting requirements for the Revenue and Taxation Interim Committee;
▸ modifies reporting requirements for the inspector general of Medicaid;
▸ modifies reporting requirements for the Department of Natural Resources;
▸ removes reduction in funds reporting requirements for state agencies;
▸ requires certain reports to be electronic;
▸ removes reporting requirements for the Division of Finance on highway general
obligation bonds;
▸ creates reporting requirements for the Department of Transportation regarding
payoff of highway general obligation bonds;
▸ removes the Division of Finance's report of general obligation bonds;
▸ removes the Department of Transportation's report of prioritized projects and
modifies other reporting requirements for the department; and
▸ requires the attorney general's annual report to be electronic.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
26-18-405
, as enacted by Laws of Utah 2011, Chapter 211
26-33a-106.5
, as last amended by Laws of Utah 2014, Chapter 425
35A-3-302
, as last amended by Laws of Utah 2015, Chapter 221
35A-11-203
, as enacted by Laws of Utah 2014, Chapter 127
59-7-701
, as last amended by Laws of Utah 2009, Chapter 312
63A-13-204
, as last amended by Laws of Utah 2015, Chapter 135
63A-13-502
, as last amended by Laws of Utah 2013, Chapter 359 and renumbered and
amended by Laws of Utah 2013, Chapter 12
63B-17-401
, as enacted by Laws of Utah 2008, Chapter 128
63J-1-218
, as last amended by Laws of Utah 2013, Second Special Session, Chapters 1
and 2
63N-13-206
, as renumbered and amended by Laws of Utah 2015, Chapter 283
63N-13-209
, as renumbered and amended by Laws of Utah 2015, Chapter 283
63N-13-210
, as renumbered and amended by Laws of Utah 2015, Chapter 283
72-2-118
, as last amended by Laws of Utah 2013, Chapter 400
72-2-125
, as last amended by Laws of Utah 2013, Chapter 400
72-6-206
, as enacted by Laws of Utah 2006, Chapter 36
78B-6-1904
, as enacted by Laws of Utah 2014, Chapter 310
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
26-18-405
 is amended to read:
26-18-405.
Waivers to maximize replacement of fee-for-service delivery model.
(1) The department shall develop a proposal to amend the state plan for the Medicaid
program in a way that maximizes replacement of the fee-for-service delivery model with one or
more risk-based delivery models.
(2) The proposal shall:
(a) restructure the program's provider payment provisions to reward health care
providers for delivering the most appropriate services at the lowest cost and in ways that,
compared to services delivered before implementation of the proposal, maintain or improve
recipient health status;
(b) restructure the program's cost sharing provisions and other incentives to reward
recipients for personal efforts to:
(i) maintain or improve their health status; and
(ii) use providers that deliver the most appropriate services at the lowest cost;
(c) identify the evidence-based practices and measures, risk adjustment methodologies,
payment systems, funding sources, and other mechanisms necessary to reward providers for
delivering the most appropriate services at the lowest cost, including mechanisms that:
(i) pay providers for packages of services delivered over entire episodes of illness
rather than for individual services delivered during each patient encounter; and
(ii) reward providers for delivering services that make the most positive contribution to
a recipient's health status;
(d) limit total annual per-patient-per-month expenditures for services delivered through
fee-for-service arrangements to total annual per-patient-per-month expenditures for services
delivered through risk-based arrangements covering similar recipient populations and services;
and
(e) limit the rate of growth in per-patient-per-month General Fund expenditures for the
program to the rate of growth in General Fund expenditures for all other programs, when the
rate of growth in the General Fund expenditures for all other programs is greater than zero.
(3) To the extent possible, the department shall develop the proposal with the input of
stakeholder groups representing those who will be affected by the proposal.
[
(4) No later than June 1, 2011, the department shall submit a written report on the
development of the proposal to the Legislature's Executive Appropriations Committee, Social
Services Appropriations Subcommittee, and Health and Human Services Interim Committee.
]
[
(5) No later than July 1, 2011, the department shall submit to the Centers for Medicare
and Medicaid Services within the United States Department of Health and Human Services a
request for waivers from federal statutory and regulatory law necessary to implement the
proposal.
]
[
(6) After the request for waivers has been made, and prior to its implementation, the
department shall report to the Legislature in accordance with Section 
26-18-3
 on any
modifications to the request proposed by the department or made by the Centers for Medicare
and Medicaid Services.
]
[
(7)
] 
(4)
 The department shall implement the proposal in the fiscal year that follows the
fiscal year in which the United States Secretary of Health and Human Services approves the
request for waivers.
Section 2. Section 
26-33a-106.5
 is amended to read:
26-33a-106.5.
Comparative analyses.
(1) The committee may publish compilations or reports that compare and identify
health care providers or data suppliers from the data it collects under this chapter or from any
other source.
(2) (a) Except as provided in Subsection (7)(c), the committee shall publish
compilations or reports from the data it collects under this chapter or from any other source
which:
(i) contain the information described in Subsection (2)(b); and
(ii) compare and identify by name at least a majority of the health care facilities, health
care plans, and institutions in the state.
(b) Except as provided in Subsection (7)(c), the report required by this Subsection (2)
shall:
(i) be published at least annually; and
(ii) contain comparisons based on at least the following factors:
(A) nationally or other generally recognized quality standards;
(B) charges; and
(C) nationally recognized patient safety standards.
(3) The committee may contract with a private, independent analyst to evaluate the
standard comparative reports of the committee that identify, compare, or rank the performance
of data suppliers by name. The evaluation shall include a validation of statistical
methodologies, limitations, appropriateness of use, and comparisons using standard health
services research practice. The analyst shall be experienced in analyzing large databases from
multiple data suppliers and in evaluating health care issues of cost, quality, and access. The
results of the analyst's evaluation shall be released to the public before the standard
comparative analysis upon which it is based may be published by the committee.
(4) The committee shall adopt by rule a timetable for the collection and analysis of data
from multiple types of data suppliers.
(5) The comparative analysis required under Subsection (2) shall be available:
(a) free of charge and easily accessible to the public; and
(b) on the Health Insurance Exchange either directly or through a link.
(6) (a) The department shall include in the report required by Subsection (2)(b), or
include in a separate report, comparative information on commonly recognized or generally
agreed upon measures of cost and quality identified in accordance with Subsection (7), for:
(i) routine and preventive care; and
(ii) the treatment of diabetes, heart disease, and other illnesses or conditions as
determined by the committee.
(b) The comparative information required by Subsection (6)(a) shall be based on data
collected under Subsection (2) and clinical data that may be available to the committee, and
shall compare:
(i) beginning December 31, 2014, results for health care facilities or institutions;
(ii) beginning December 31, 2014, results for health care providers by geographic
regions of the state;
(iii) beginning July 1, 2016, a clinic's aggregate results for a physician who practices at
a clinic with five or more physicians; and
(iv) beginning July 1, 2016, a geographic region's aggregate results for a physician who
practices at a clinic with less than five physicians, unless the physician requests physician-level
data to be published on a clinic level.
(c) The department:
(i) may publish information required by this Subsection (6) directly or through one or
more nonprofit, community-based health data organizations;
(ii) may use a private, independent analyst under Subsection (3) in preparing the report
required by this section; and
(iii) shall identify and report to the Legislature's Health and Human Services Interim
Committee by July 1, 2014, and every July 1 thereafter until July 1, 2019, at least three new
measures of quality to be added to the report each year.
(d) A report published by the department under this Subsection (6):
(i) is subject to the requirements of Section 
26-33a-107
; and
(ii) shall, prior to being published by the department, be submitted to a neutral,
non-biased entity with a broad base of support from health care payers and health care
providers in accordance with Subsection (7) for the purpose of validating the report.
(7) (a) The Health Data Committee shall, through the department, for purposes of
Subsection (6)(a), use the quality measures that are developed and agreed upon by a neutral,
non-biased entity with a broad base of support from health care payers and health care
providers.
(b) If the entity described in Subsection (7)(a) does not submit the quality measures,
the department may select the appropriate number of quality measures for purposes of the
report required by Subsection (6).
(c) (i) For purposes of the reports published on or after July 1, 2014, the department
may not compare individual facilities or clinics as described in Subsections (6)(b)(i) through
(iv) if the department determines that the data available to the department can not be
appropriately validated, does not represent nationally recognized measures, does not reflect the
mix of cases seen at a clinic or facility, or is not sufficient for the purposes of comparing
providers.
(ii) The department shall report to the Legislature's [
Executive Appropriations
] 
Health
and Human Services Interim
 Committee prior to making a determination not to publish a report
under Subsection (7)(c)(i).
Section 3. Section 
35A-3-302
 is amended to read:
35A-3-302.
Eligibility requirements.
(1) There is created the "Family Employment Program" to provide cash assistance
under this part.
(2) (a) The department shall submit a state plan to the Secretary of the United States
Department of Health and Human Services to obtain funding under the federal Temporary
Assistance for Needy Families Block Grant.
(b) The department shall make the state plan consistent with this part and federal law.
(c) If a discrepancy exists between a provision of the state plan and this part, this part
supersedes the provision in the state plan.
(3) The services provided under this part are for both one-parent and two-parent
families.
(4) To be eligible for cash assistance under this part, a family shall:
(a) have at least one minor dependent child; or
(b) have a parent who is in the third trimester of a pregnancy.
(5) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
department shall make rules for eligibility and the amount of cash assistance a family is eligible
to receive under this part based on:
(a) family size;
(b) family income;
(c) income disregards;
(d) other relevant factors; and
(e) if the applicant has met the eligibility requirements under Subsections (5)(a)
through (d), the assessment and other requirements described in Sections 
35A-3-304
 and
35A-3-304.5
.
(6) To determine eligibility, the department may not consider money on deposit in an
Individual Development Account established under Section 
35A-3-312
.
(7) The department shall provide for an appeal of a determination of eligibility in
accordance with Title 63G, Chapter 4, Administrative Procedures Act.
(8) (a) The department shall make a report to [
either the Legislature's Executive
Appropriations Committee or
] the Social Services Appropriations Subcommittee on any
proposed rule change made under Subsection (5) that would modify the:
(i) eligibility requirements for cash assistance; or
(ii) amount of cash assistance a family is eligible to receive.
(b) The department shall submit the report under Subsection (8)(a) prior to
implementing the proposed rule change.
(c) The report under Subsection (8)(a) shall include:
(i) a description of the department's current practice or policy that it is proposing to
change;
(ii) an explanation of why the department is proposing the change;
(iii) the effect of an increase or decrease in cash benefits on families; and
(iv) the fiscal impact of the proposed change.
(d) The department may use the Notice of Proposed Rule Amendment form filed with
the Division of Administrative Rules as its report if the notice contains the information
required under Subsection (8)(c).
(9) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
department shall make rules to ensure that:
(a) a recipient of assistance from the Family Employment Program:
(i) has adequate access to the assistance;
(ii) has the ability to use and withdraw assistance with minimal fees or surcharges,
including the opportunity to obtain assistance with no fees or surcharges;
(iii) is provided information regarding fees and surcharges that may apply to assistance
accessed through an electronic fund transaction; and
(iv) is provided information explaining the restrictions on accessing assistance
described in Subsection (10); and
(b) information regarding fees and surcharges that may apply when accessing
assistance from the Family Employment Program through an electronic fund transaction is
available to the public.
(10) An individual receiving assistance under this section may not access the assistance
through an electronic benefit transfer, including through an automated teller machine or
point-of-sale device, in an establishment in the state that:
(a) exclusively or primarily sells intoxicating liquor;
(b) allows gambling or gaming; or
(c) provides adult-oriented entertainment where performers disrobe or perform
unclothed.
(11) An establishment described under Subsection (10)(a), (b), or (c) may not allow an
individual to access the assistance under this section on the establishment's premises through
an electronic benefit transfer, including through an automated teller machine or point-of-sale
device.
(12) In accordance with federal requirements and in accordance with Title 63G,
Chapter 3, Utah Administrative Rulemaking Act, the department shall make rules to prevent
individuals from accessing assistance in a manner prohibited by Subsections (10) and (11),
which rules may include enforcement provisions that impose sanctions that temporarily or
permanently disqualify an individual from receiving assistance.
Section 4. Section 
35A-11-203
 is amended to read:
35A-11-203.
Annual report.
(1) The commission shall annually prepare and publish a report directed to the:
(a) governor;
(b) Education Interim Committee;
(c) Economic Development and Workforce Services Interim Committee;
[
(d) Executive Appropriations Committee;
]
[
(e)
] 
(d)
 Legislative Management Committee;
[
(f)
] 
(e)
 Business, Economic Development, and Labor Appropriations Subcommittee;
and
[
(g)
] 
(f)
 State Council on Workforce Services.
(2) The report described in Subsection (1) shall:
(a) describe how the commission fulfilled its statutory purposes and duties during the
year; and
(b) contain recommendations on how the state should act to address issues relating to
women in the economy.
Section 5. Section 
59-7-701
 is amended to read:
59-7-701.
Taxation of S corporations -- Revenue and Taxation Interim
Committee study.
(1) Except as provided in Section 
59-7-102
 and subject to the other provisions of this
part, beginning on July 1, 1994, and ending on the last day of the taxable year that begins on or
after January 1, 2012, but begins on or before December 31, 2012, an S corporation is subject
to taxation in the same manner as that S corporation is taxed under Subchapter S - Tax
Treatment of S Corporations and Their Shareholders, Sec. 1361 et seq., Internal Revenue Code.
(2) An S corporation is taxed at the tax rate provided in Section 
59-7-104
.
(3) The business income and nonbusiness income of an S corporation is subject to Part
3, Allocation and Apportionment of Income - Utah UDITPA Provisions.
(4) An S corporation having income derived from or connected with Utah sources shall
make a return in accordance with Section 
59-10-507
.
(5) An S corporation shall make payments of estimated tax as required by Section
59-7-504
.
(6) An S corporation is subject to Chapter 10, Part 14, Pass-Through Entities and
Pass-Through Entity Taxpayers Act.
(7) A pass-through entity taxpayer as defined in Section 
59-10-1402
 of an S
corporation is subject to Chapter 10, Part 14, Pass-Through Entities and Pass-Through Entity
Taxpayers Act.
(8) Provisions under this chapter governing the following apply to an S corporation:
(a) an assessment;
(b) a penalty;
(c) a refund; or
(d) a record required for an S corporation.
[
(9) (a) During the 2011 interim, the Revenue and Taxation Interim Committee shall
study the fiscal impacts of:
]
[
(i) the enactment of Laws of Utah 2009, Chapter 312; and
]
[
(ii) the taxation of S corporations under this part.
]
[
(b) On or before November 30, 2011, the Revenue and Taxation Interim Committee
shall report its findings and recommendations on the study to the Executive Appropriations
Committee.
]
Section 6. Section 
63A-13-204
 is amended to read:
63A-13-204.
Selection and review of claims.
(1) (a) The office shall periodically select and review a representative sample of claims
submitted for reimbursement under the state Medicaid program to determine whether fraud,
waste, or abuse occurred.
(b) The office shall limit its review for waste and abuse under Subsection (1)(a) to 36
months prior to the date of the inception of the investigation or 72 months if there is a credible
allegation of fraud. In the event the office or the fraud unit determines that there is fraud as
defined in Section 
63A-13-102
, then the statute of limitations defined in Subsection
26-20-15
(1) shall apply.
(2) The office may directly contact the recipient of record for a Medicaid reimbursed
service to determine whether the service for which reimbursement was claimed was actually
provided to the recipient of record.
(3) The office shall:
(a) generate statistics from the sample described in Subsection (1) to determine the
type of fraud, waste, or abuse that is most advantageous to focus on in future audits or
investigations;
(b) ensure that the office, or any entity that contracts with the office to conduct audits:
(i) has on staff or contracts with a medical or dental professional who is experienced in
the treatment, billing, and coding procedures used by the type of provider being audited; and
(ii) uses the services of the appropriate professional described in Subsection (3)(b)(i) if
the provider who is the subject of the audit disputes the findings of the audit;
(c) ensure that a finding of overpayment or underpayment to a provider is not based on
extrapolation, unless:
(i) there is a determination that the level of payment error involving the provider
exceeds a 10% error rate:
(A) for a sample of claims for a particular service code; and
(B) over a three year period of time;
(ii) documented education intervention has failed to correct the level of payment error;
and
(iii) the value of the claims for the provider, in aggregate, exceeds $200,000 in
reimbursement for a particular service code on an annual basis; and
(d) require that any entity with which the office contracts, for the purpose of
conducting an audit of a service provider, shall be paid on a flat fee basis for identifying both
overpayments and underpayments.
(4) (a) If the office, or a contractor on behalf of the department:
(i) intends to implement the use of extrapolation as a method of auditing claims, the
department shall, prior to adopting the extrapolation method of auditing, report its intent to use
extrapolation [
to
]:
(A) 
to
 the Social Services Appropriations Subcommittee; and
(B) [
the Executive Appropriations Committee pursuant to
] 
as required under
 Section
63A-13-502
; and
(ii) determines Subsections (2)(c)(i) through (iii) are applicable to a provider, the office
or the contractor may use extrapolation only for the service code associated with the findings
under Subsections (2)(c)(i) through (iii).
(b) (i) If extrapolation is used under this section, a provider may, at the provider's
option, appeal the results of the audit based on:
(A) each individual claim; or
(B) the extrapolation sample.
(ii) Nothing in this section limits a provider's right to appeal the audit under Title 63G,
Administrative Code, Title 63G, Chapter 4, Administrative Procedures Act, the Medicaid
program and its manual or rules, or other laws or rules that may provide remedies to providers.
Section 7. Section 
63A-13-502
 is amended to read:
63A-13-502.
Report and recommendations to governor and Executive
Appropriations Committee.
(1) The inspector general of Medicaid services shall, on an annual basis, prepare [
a
written
] 
an electronic
 report on the activities of the office for the preceding fiscal year.
(2) The report shall include:
(a) non-identifying information, including statistical information, on:
(i) the items described in Subsection 
63A-13-202
(1)(b) and Section 
63A-13-204
;
(ii) action taken by the office and the result of that action;
(iii) fraud, waste, and abuse in the state Medicaid program;
(iv) the recovery of fraudulent or improper use of state and federal Medicaid funds;
(v) measures taken by the state to discover and reduce fraud, waste, and abuse in the
state Medicaid program;
(vi) audits conducted by the office;
(vii) investigations conducted by the office and the results of those investigations; and
(viii) administrative and educational efforts made by the office and the division to
improve compliance with Medicaid program policies and requirements;
(b) recommendations on action that should be taken by the Legislature or the governor
to:
(i) improve the discovery and reduction of fraud, waste, and abuse in the state
Medicaid program;
(ii) improve the recovery of fraudulently or improperly used Medicaid funds; and
(iii) reduce costs and avoid or minimize increased costs in the state Medicaid program;
(c) recommendations relating to rules, policies, or procedures of a state or local
government entity; and
(d) services provided by the state Medicaid program that exceed industry standards.
(3) The report described in Subsection (1) may not include any information that would
interfere with or jeopardize an ongoing criminal investigation or other investigation.
(4) On or before [
October
] 
November
of each year, the inspector general of Medicaid
services shall provide the 
electronic
 report described in Subsection (1) to the Executive
Appropriations Committee of the Legislature and to the governor [
on or before October 1 of
each year
].
[
(5) The inspector general of Medicaid services shall present the report described in
Subsection (1) to the Executive Appropriations Committee of the Legislature before November
of each year.
]
Section 8. Section 
63B-17-401
 is amended to read:
63B-17-401.
Authorizations to acquire or exchange property.
The Legislature intends that:
(1) the Division of Facilities Construction and Management, acting on behalf of the
Department of Natural Resources, may enter into a lease purchase agreement with Uintah
County to provide needed space for agency programs in the area;
(2) the agreement shall involve a trade at fair market value between the Division of
Facilities Construction and Management and Uintah County of the following two properties:
(a) that portion of the current Uintah County complex that is owned by the state,
located at 147 East Main Street, Vernal, Utah, which currently houses the Department of
Natural Resources and other state agencies; and
(b) a parcel of land owned by Uintah County, located at approximately 318 North
Vernal Avenue, Vernal, Utah, which would become the location of the needed space under the
lease purchase agreement;
(3) before entering into an agreement with Uintah County, the Division of Facilities
Construction and Management shall ensure that all other state agencies in the Uintah County
complex stay in their current location or receive adequate replacement space, with the terms of
any replacement space acceptable to each state agency;
(4) before entering into an agreement with Uintah County, the Department of Natural
Resources shall obtain the approval of the State Building Board; 
and
(5) the State Building Board may approve the agreement only if the Department of
Natural Resources demonstrates that the lease purchase will be a benefit to the state[
; and
]
.
[
(6) before entering into an agreement with Uintah County, and after obtaining the
approval of the State Building Board, the Department of Natural Resources shall report the
terms of the agreement to the legislative Executive Appropriations Committee.
]
Section 9. Section 
63J-1-218
 is amended to read:
63J-1-218.
Reduction in federal funds -- Agencies to reduce budgets.
[
(1)
] In any fiscal year in which federal grants to be received by state agencies,
departments, divisions, or institutions are reduced below the level estimated in the
appropriations acts for that year, the programs supported by those grants must be reduced
commensurate with the amount of the federal reduction unless the Legislature appropriates
state funds to offset the loss in federal funding.
[
(2) This program modification shall be reported to the Legislature through the
Executive Appropriations Committee and the Office of the Legislative Fiscal Analyst.
]
Section 10. Section 
63N-13-206
 is amended to read:
63N-13-206.
Review of initial proposal -- Affected department review.
(1) The committee shall review and evaluate an initial proposal submitted in
accordance with:
(a) this part; and
(b) any rule established by the board under Section 
63N-13-203
.
(2) If the committee, in its sole discretion, determines to proceed with the project, the
committee shall submit a copy of the initial proposal to:
(a) the affected department; and
(b) the Governor's Office of Management and Budget.
(3) (a) An affected department, directly affected state entity, and school district
receiving a copy of the initial proposal under Subsection (2) or (4) shall review the initial
proposal and provide the committee with any comment, suggestion, or modification to the
project.
(b) After receiving an initial proposal, the Governor's Office of Management and
Budget shall prepare an economic feasibility report containing:
(i) information concerning the economic feasibility and effectiveness of the project
based upon competent evidence;
(ii) a dollar amount representing the total estimated fiscal impact of the project to the
affected department and the state; and
(iii) any other matter the committee requests or is required by the board by rule.
(4) In reviewing an initial proposal, the affected department shall share the initial
proposal with any other state entity or school district that will be directly affected if the
proposal is ultimately adopted, if the confidentiality of the initial proposal is maintained.
(5) If the committee determines to proceed with the project, the committee shall submit
[
a
] 
an electronic
 copy of the initial proposal, including any comment, suggestion, or
modification to the initial proposal, to:
(a) the chief procurement officer in accordance with Section 
63G-6a-711
; and
(b) the Executive Appropriations Committee, for informational purposes.
(6) Before taking any action under Subsection (5), the committee shall consider:
(a) any comment, suggestion, or modification to the initial proposal submitted in
accordance with Subsection (3);
(b) the extent to which the project is practical, efficient, and economically beneficial to
the state and the affected department;
(c) the economic feasibility report prepared by the Governor's Office of Management
and Budget; and
(d) any other reasonable factor identified by the committee or required by the board by
rule.
Section 11. Section 
63N-13-209
 is amended to read:
63N-13-209.
Receipt of detailed proposals -- Economic feasibility report --
Acceptance of a detailed proposal.
(1) If the committee, in its sole discretion, determines that a detailed proposal does not
substantially meet the guidelines established under Subsection 
63N-13-208
(1), the committee
may elect not to review the detailed proposal.
(2) (a) After receiving a detailed proposal, the Governor's Office of Management and
Budget shall update the economic feasibility report prepared under Section 
63N-13-206
.
(b) A detailed proposal that is to be reviewed by the committee shall be submitted to
the affected department, a directly affected state entity, and a directly affected school district
for comment or suggestion.
(3) In determining which, if any, of the detailed proposals to accept, in addition to the
proposal evaluation criteria, the committee shall consider the following factors:
(a) any comment, suggestion, or modification offered in accordance with Subsection
63N-13-206
(3) or Subsection (2)(b);
(b) the economic feasibility report updated in accordance with Subsection (2)(a);
(c) the source of funding and any resulting constraint necessitated by the funding
source;
(d) any alternative funding proposal;
(e) the extent to which the project is practical, efficient, and economically beneficial to
the state and the affected department; and
(f) any other reasonable factor identified by the committee or required by the board by
rule.
(4) (a) If the committee accepts a detailed proposal, the accepted detailed proposal
shall be submitted to the board for approval.
(b) If the affected department or a directly affected state entity or school district
disputes the detailed proposal approved by the board, the Governor's Office of Management
and Budget shall consider the detailed proposal and any comment, suggestion, or modification
and determine whether to proceed with a project agreement.
(c) If there is no funding for a project that is the subject of a detailed proposal and the
committee determines to proceed with the project, the office shall submit a report to the
Governor's Office of Management and Budget and 
an electronic copy of the report to
 the
Executive Appropriations Committee detailing the position of the board, the affected
department, a directly affected state entity or school district.
(5) A detailed proposal received from a private entity other than the private entity that
submitted the initial proposal may not be accepted in place of the detailed proposal offered by
the private entity that submitted the initial proposal solely because of a lower cost if the lower
cost is within the amount of the fee paid by the private entity that submitted the initial proposal
for review of the initial proposal.
Section 12. Section 
63N-13-210
 is amended to read:
63N-13-210.
Project agreement.
(1) If the board accepts the detailed proposal, the executive director shall:
(a) prepare a project agreement in consultation with the affected department and any
other state entity directly impacted by the detailed proposal; and
(b) enter into the project agreement with the private entity.
(2) A project agreement shall be signed by the executive director, the affected
department, a directly affected state entity or school district, and the private entity.
(3) A project agreement shall include provisions concerning:
(a) the scope of the project;
(b) the pricing method of the project;
(c) the executive director's or the state's ability to terminate for convenience or for
default, and any termination compensation to be paid to the private entity, if applicable;
(d) the ability to monitor performance under the project agreement;
(e) the appropriate limits of liability;
(f) the appropriate transition of services, if applicable;
(g) the exceptions from applicable rules and procedures for the implementation and
administration of the project by the affected department, if any;
(h) the clauses and remedies applicable to state contracts under Title 63G, Chapter 6a,
Part 12, Contracts and Change Orders; and
(i) any other matter reasonably requested by the committee or required by the board by
rule.
(4) [
A
] 
An electronic
 copy of the signed project agreement shall be submitted to:
(a) the affected department; and
(b) the Executive Appropriations Committee.
(5) A project agreement is considered a contract under Title 63G, Chapter 6a, Utah
Procurement Code.
(6) The affected department shall implement and administer the project agreement in
accordance with rules made under Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
except as modified by the project agreement under Subsection (3)(g).
Section 13. Section 
72-2-118
 is amended to read:
72-2-118.
Centennial Highway Fund.
(1) There is created a capital projects fund entitled the Centennial Highway Fund
within the Transportation Investment Fund of 2005 created by Section 
72-2-124
.
(2) The account consists of money generated from the following revenue sources:
(a) any voluntary contributions received for the construction, reconstruction, or
renovation of state or federal highways; and
(b) appropriations made to the fund by the Legislature.
(3) (a) The fund shall earn interest.
(b) All interest earned on fund money shall be deposited into the fund.
(4) The executive director may use fund money, as prioritized by the Transportation
Commission, only to pay the costs of construction, reconstruction, or renovation to state and
federal highways.
(5) When the highway general obligation bonds have been paid off and the highway
projects completed that are intended to be paid from revenues deposited in the account as
determined by the Executive Appropriations Committee under Subsection (6)(d), the Division
of Finance shall transfer any existing balance in the account into the Transportation Investment
Fund of 2005 created by Section 
72-2-124
.
(6) (a) The Division of Finance shall monitor the highway general obligation bonds
that are being paid from revenues deposited in the fund.
(b) The department shall monitor the highway construction, reconstruction, or
renovation projects that are being paid from revenues deposited in the fund.
[
(c) Upon request by the Executive Appropriations Committee of the Legislature:
]
[
(i) the Division of Finance shall report to the committee the status of all highway
general obligation bonds that are being paid from revenues deposited in the fund; and
]
[
(ii) the department shall report to the committee the status of all highway construction,
reconstruction, or renovation projects that are being paid from revenues deposited in the fund.
]
[
(d)
] 
(c)
 The [
Executive Appropriations Committee of the Legislature
] 
department
shall notify the State Tax Commission[
, the department,
] and the Division of Finance when:
(i) all highway general obligation bonds that are intended to be paid from revenues
deposited in the fund have been paid off; and
(ii) all highway projects that are intended to be paid from revenues deposited in the
account have been completed.
Section 14. Section 
72-2-125
 is amended to read:
72-2-125.
Critical Highway Needs Fund.
(1) There is created a capital projects fund within the Transportation Investment Fund
of 2005 known as the "Critical Highway Needs Fund."
(2) The fund consists of money generated from the following sources:
(a) any voluntary contributions received for the maintenance, construction,
reconstruction, or renovation of state and federal highways; and
(b) appropriations made to the fund by the Legislature.
(3) (a) The fund shall earn interest.
(b) Interest on fund money shall be deposited into the fund.
(4) (a) The executive director shall use money deposited into the fund to pay the costs
of right-of-way acquisition, maintenance, construction, reconstruction, or renovation to state
and federal highways identified by the department and prioritized by the commission in
accordance with this Subsection (4).
(b) (i) The department shall:
(A) establish a complete list of projects to be maintained, constructed, reconstructed, or
renovated using the funding described in Subsection (4)(a) based on the following criteria:
(I) the highway construction project is a high priority project due to high growth in the
surrounding area;
(II) the highway construction project addresses critical access needs that have a high
impact due to commercial and energy development;
(III) the highway construction project mitigates congestion;
(IV) whether local matching funds are available for the highway construction project;
and
(V) the highway construction project is a critical alternative route for priority Interstate
15 reconstruction projects; and
(B) submit the list of projects to the commission for prioritization in accordance with
Subsection (4)(c).
(ii) A project that is included in the list under this Subsection (4):
(A) is not required to be currently listed in the statewide long-range plan; and
(B) is not required to be prioritized through the prioritization process for new
transportation capacity projects adopted under Section 
72-1-304
.
(c) (i) The commission shall prioritize the project list submitted by the department in
accordance with Subsection (4)(b).
(ii) For projects prioritized under this Subsection (4)(c), the commission shall give
priority consideration to fully funding a project that meets the criteria under Subsection
(4)(b)(i)(A)(V).
(d) (i) Expenditures of bond proceeds issued in accordance with Section 
63B-16-101
by the department for the construction of highway projects prioritized under this Subsection (4)
may not exceed $1,200,000,000.
(ii) Money expended from the fund for principal, interest, and issuance costs of bonds
issued under Section 
63B-16-101
 is not considered an expenditure for purposes of the
$1,200,000,000 cap under Subsection (4)(d)(i).
(e) (i) Before bonds authorized by Section 
63B-16-101
 may be issued in any fiscal
year, the department and the commission shall appear before the Executive Appropriations
Committee of the Legislature and present:
(A) the commission's current list of projects established and prioritized in accordance
with this Subsection (4); and
(B) the amount of bond proceeds that the department needs to provide funding for
projects on the project list prioritized in accordance with this Subsection (4) for the next fiscal
year.
(ii) The Executive Appropriations Committee of the Legislature shall review and
comment on the prioritized project list and the amount of bond proceeds needed to fund the
projects on the prioritized list.
(f) The Division of Finance shall, from money deposited into the fund, transfer the
amount of funds necessary to pay principal, interest, and issuance costs of bonds authorized by
Section 
63B-16-101
 in the current fiscal year to the appropriate debt service or sinking fund.
(5) When the general obligation bonds authorized by Section 
63B-16-101
 have been
paid off and the highway projects completed that are included in the prioritized project list
under Subsection (4), the Division of Finance shall transfer any existing balance in the fund
into the Transportation Investment Fund of 2005 created by Section 
72-2-124
.
(6) (a) The Division of Finance shall monitor the general obligation bonds authorized
by Section 
63B-16-101
.
(b) The department shall monitor the highway construction or reconstruction projects
that are included in the prioritized project list under Subsection (4).
[
(c) Upon request by the Executive Appropriations Committee of the Legislature:
]
[
(i) the Division of Finance shall report to the committee the status of all general
obligation bonds issued under Section 
63B-16-101
; and
]
[
(ii) the department shall report to the committee the status of all highway construction
or reconstruction projects that are included in the prioritized project list under Subsection (4).
]
[
(d)
] 
(c)
 When the Division of Finance has reported that the general obligation bonds
issued by Section 
63B-16-101
 have been paid off and the department has reported that projects
included in the prioritized project list are complete to the Executive Appropriations Committee
of the Legislature, the Division of Finance shall transfer any existing fund balance in
accordance with Subsection (5).
(7) (a) Unless prioritized and approved by the Transportation Commission, the
department may not delay a project prioritized under this section to a different fiscal year than
programmed by the commission due to an unavoidable shortfall in revenues if:
(i) the prioritized project was funded by the Legislature in an appropriations act; or
(ii) general obligation bond proceeds have been issued for the project in the current
fiscal year.
(b) For projects identified under Subsection (7)(a), the commission shall prioritize and
approve any project delays for projects prioritized under this section due to an unavoidable
shortfall in revenues if:
(i) the prioritized project was funded by the Legislature in an appropriations act; or
(ii) general obligation bond proceeds have been issued for the project in the current
fiscal year.
Section 15. Section 
72-6-206
 is amended to read:
72-6-206.
Commission approval and legislative review of tollway development
agreement provisions.
(1) Prior to the department entering into a tollway development agreement under
Section 
72-6-203
, the department shall submit to the commission for approval the tollway
development agreement, including:
(a) a description of the tollway facility, including the conceptual design of the facility
and all proposed interconnections with other transportation facilities;
(b) the proposed date for development, operation, or both of the tollway facility;
(c) the proposed term of the tollway development agreement;
(d) the proposed method to determine toll rates or user fees, including:
(i) identification of vehicle or user classifications, or both, for toll rates;
(ii) the original proposed toll rate or user fee for the tollway facility;
(iii) proposed toll rate or user fee increases; and
(iv) a maximum toll rate or user fee for the tollway facility; and
(e) any proposed revenue, public or private, or proposed debt or equity investment that
will be used for the design, construction, financing, acquisition, maintenance, or operation of
the tollway facility.
(2) Prior to amending or modifying a tollway development agreement, the department
shall submit the proposed amendment or modification to the commission for approval.
(3) The department shall report to the [
Executive Appropriations Committee,
]
Transportation Interim Committee[
,
] or another committee designated by the Legislative
Management Committee on the status and progress of a tollway subject to a tollway
development agreement under Section 
72-6-203
.
Section 16. Section 
78B-6-1904
 is amended to read:
78B-6-1904.
Action -- Enforcement -- Remedies -- Damages.
(1) A target who has received a demand letter asserting patent infringement in bad
faith, or a person aggrieved by a violation of this part, may bring an action in district court. 
The court may award the following remedies to a target who prevails in an action brought
pursuant to this part:
(a) equitable relief;
(b) actual damages;
(c) costs and fees, including reasonable attorney fees; and
(d) punitive damages in an amount to be established by the court, of not more than the
greater of $50,000 or three times the total of damages, costs, and fees.
(2) The attorney general may conduct civil investigations and bring civil actions
pursuant to this part. In an action brought by the attorney general under this part, the court may
award or impose any relief it considers prudent, including the following:
(a) equitable relief;
(b) statutory damages of not less than $750 per demand letter distributed in bad faith;
and
(c) costs and fees, including reasonable attorney fees, to the attorney general.
(3) This part may not be construed to limit other rights and remedies available to the
state or to any person under any other law.
(4) A demand letter or assertion of a patent infringement that includes a claim for relief
arising under 35 U.S.C. Sec. 271(e)(2) is not subject to the provisions of this part.
(5) The attorney general shall [
report
] annually 
provide an electronic report
 to the
Executive Appropriations Committee regarding the number of investigations and actions
brought under this part. The report shall include:
(a) the number of investigations commenced;
(b) the number of actions brought under the provisions of this part;
(c) the current status of actions brought under Subsection (5)(b); and
(d) final resolution of actions brought under this part, including any recovery under
Subsection (2).