Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 431 Third Substitute (2017GS)

Sponsor

Rep. Quinn, T.

Final action

Governor Signed 3/24/2017

Outcome

Became law — signed by Gov. Gary R. Herbert

Summary

What it does

• This bill:
• defines terms;
• prohibits a government officer or employee from:
• making a personal use expenditure with public funds; and
• incurring indebtedness or liability on behalf of, or payable by, a governmental entity, institution of higher education, or political subdivision for a personal use expenditure;
• establishes administrative penalties for government officers or employees making personal use expenditures with public funds;
• prohibits a government officer or employee who has been convicted of misusing public money from disbursing public funds or accessing public accounts; and
• makes technical changes.

Every vote on this bill

Bill text

GOVERNMENT EMPLOYEES REIMBURSEMENT AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Tim Quinn
Senate Sponsor: 
Kevin T. Van Tassell
LONG TITLE
General Description:
This bill prohibits government officers or employees from making personal purchases
with public funds.
Highlighted Provisions:
This bill:
▸ defines terms;
▸ prohibits a government officer or employee from:
• making a personal use expenditure with public funds; and
• incurring indebtedness or liability on behalf of, or payable by, a governmental
entity, institution of higher education, or political subdivision for a personal use
expenditure;
▸ establishes administrative penalties for government officers or employees making
personal use expenditures with public funds;
▸ prohibits a government officer or employee who has been convicted of misusing
public money from disbursing public funds or accessing public accounts; and
▸ makes technical changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
76-8-402
, as last amended by Laws of Utah 1999, Chapter 106
ENACTS:
11-55-101
, Utah Code Annotated 1953
11-55-102
, Utah Code Annotated 1953
11-55-103
, Utah Code Annotated 1953
11-55-104
, Utah Code Annotated 1953
53B-7-106
, Utah Code Annotated 1953
63A-3-110
, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
11-55-101
 is enacted to read:
CHAPTER 55. PERSONAL USE EXPENDITURES FOR
POLITICAL SUBDIVISION OFFICERS AND EMPLOYEES
 11-55-101.
Title.
This chapter is known as "Personal Use Expenditures for Political Subdivision Officers
and Employees."
Section 2. Section 
11-55-102
 is enacted to read:
 11-55-102.
Definitions.
As used in this chapter:
(1) "Employee" means a person who is not an elected or appointed officer and who is
employed on a full- or part-time basis by a political subdivision.
(2) "Officer" means a person who is elected or appointed to an office or position within
a political subdivision.
(3) (a) "Personal use expenditure" means an expenditure made without the authority of
law that:
(i) is not directly related to the performance of an activity as an officer or employee of
a political subdivision;
(ii) primarily furthers a personal interest of an officer or employee of a political
subdivision or the family, a friend, or an associate of an officer or employee of a political
subdivision; and
(iii) would constitute taxable income under federal law.
(b) "Personal use expenditure" does not include:
(i) a de minimis or incidental expenditure;
(ii) a monthly vehicle allowance; or
(iii) a government vehicle that an officer or employee uses to travel to and from the
officer or employee's official duties, including an allowance for personal use as provided by a
written policy of the political subdivision.
(4) "Political subdivision" means any county, city, town, school district, community
reinvestment agency, special improvement or taxing district, local district, special service
district, entity created by an interlocal agreement adopted under Title 11, Chapter 13, Interlocal
Cooperation Act, or other governmental subdivision or public corporation.
(5) "Public funds" means the same as that term is defined in Section 
51-7-3
.
Section 3. Section 
11-55-103
 is enacted to read:
 11-55-103.
Personal use expenditures prohibited.
(1) An officer or employee of a political subdivision may not:
(a) use public funds for a personal use expenditure; or
(b) incur indebtedness or liability on behalf of, or payable by, a political subdivision
for a personal use expenditure.
(2) If a political subdivision determines that a political subdivision officer or employee
has intentionally made a personal use expenditure in violation of Subsection (1), the political
subdivision shall:
(a) require the political subdivision officer or employee to deposit the amount of the
personal use expenditure into the fund or account from which:
(i) the personal use expenditure was disbursed; or
(ii) payment for the indebtedness or liability for a personal use expenditure was
disbursed;
(b) require the political subdivision officer or employee to remit an administrative
penalty in an amount equal to 50% of the personal use expenditure to the political subdivision;
and
(c) deposit the money received under Subsection (2)(b) into the operating fund of the
political subdivision.
(3) (a) Any officer or employee of a political subdivision who has been found by the
political subdivision to have made a personal use expenditure in violation of Subsection (1)
may appeal the finding of the political subdivision.
(b) The political subdivision shall establish an appeal process for an appeal made under
Subsection (3)(a).
(4) (a) Subject to Subsection (4)(b), a political subdivision may withhold all or a
portion of the wages of an officer or employee of the political subdivision who has violated
Subsection (1) until the requirements of Subsection (2) have been met.
(b) If the officer or employee has requested an appeal under Subsection (3), the
political subdivision may only withhold the wages of the officer or employee after the appeal
process has confirmed that the officer or employee violated Subsection (1).
Section 4. Section 
11-55-104
 is enacted to read:
 11-55-104.
 Relation to other actions -- Prohibition on disbursing funds and
accessing accounts.
(1) Nothing in this chapter:
(a) immunizes a political subdivision officer or employee from or precludes any
criminal prosecution or civil or employment action for an unlawful personal use expenditure;
or
(b) limits or supersedes the authority of a political subdivision to set compensation in
accordance with Section 
10-3-818
.
(2) A political subdivision officer or employee who has been convicted of misusing
public money under Section 
76-8-402
 may not disburse public funds or access public accounts.
Section 5. Section 
53B-7-106
 is enacted to read:
 53B-7-106.
Personal use expenditures for officers and employees of institutions of
higher education.
(1) As used in this section:
(a) "Employee" means a person who is not an elected or appointed officer and who is
employed on a full- or part-time basis by an institution of higher education.
(b) "Institution of higher education" means an institution that is part of the state system
of higher education as described in Section 
53B-1-102
.
(c) "Officer" means a person who is elected or appointed to an office or position within
an institution of higher education.
(d) (i) "Personal use expenditure" means an expenditure made without the authority of
law that:
(A) is not directly related to the performance of an activity as an officer or employee of
an institution of higher education;
(B) primarily furthers a personal interest of an officer or employee of an institution of
higher education or the family, a friend, or an associate of an officer or employee of an
institution of higher education; and
(C) would constitute taxable income under federal law.
(ii) "Personal use expenditure" does not include:
(A) a de minimis or incidental expenditure; or
(B) a state vehicle or a monthly stipend for a vehicle that an officer or employee uses to
travel to and from the officer or employee's official duties, including a minimal allowance for a
detour as provided by the institution of higher education.
(e) "Public funds" means the same as that term is defined in Section 
51-7-3
.
(2) An officer or employee of an institution of higher education may not:
(a) use public funds for a personal use expenditure; or
(b) incur indebtedness or liability on behalf of, or payable by, an institution of higher
education for a personal use expenditure.
(3) If the institution of higher education determines that an officer or employee of an
institution of higher education has intentionally made a personal use expenditure in violation of
Subsection (2), the institution of higher education shall:
(a) require the officer or employee to deposit the amount of the personal use
expenditure into the fund or account from which:
(i) the personal use expenditure was disbursed; or
(ii) payment for the indebtedness or liability for a personal use expenditure was
disbursed;
(b) require the officer or employee to remit an administrative penalty in an amount
equal to 50% of the personal use expenditure to the institution of higher education; and
(c) deposit the money received under Subsection (3)(b) into the operating fund of the
institution of higher education.
(4) (a) Any officer or employee of an institution of higher education who has been
found by the institution of higher education to have made a personal use expenditure in
violation of Subsection (2) may appeal the finding of the institution of higher education.
(b) The institution of higher education shall establish an appeal process for an appeal
made under Subsection (4)(a).
(5) (a) Subject to Subsection (5)(b), an institution of higher education may withhold all
or a portion of the wages of an officer or employee of the institution of higher education who
has violated Subsection (2) until the requirements of Subsection (3) have been met.
(b) If the officer or employee has requested an appeal under Subsection (4), the
institution of higher education may only withhold the wages of the officer or employee after the
appeal process has confirmed that the officer or employee violated Subsection (2).
(6) Nothing in this chapter immunizes an officer or employee of an institution of higher
education from or precludes any criminal prosecution or civil or employment action for an
unlawful personal use expenditure.
(7) An officer or employee of an institution of higher education who has been
convicted of misusing public money under Section 
76-8-402
 may not disburse public funds or
access public accounts.
Section 6. Section 
63A-3-110
 is enacted to read:
 63A-3-110.
Personal use expenditures for state officers and employees.
(1) As used in this section:
(a) "Employee" means a person who is not an elected or appointed officer and who is
employed on a full- or part-time basis by a governmental entity.
(b) "Governmental entity" means:
(i) an executive branch agency of the state, the offices of the governor, lieutenant
governor, state auditor, attorney general, and state treasurer, the State Board of Education, and
the State Board of Regents;
(ii) the Office of the Legislative Auditor General, the Office of the Legislative Fiscal
Analyst, the Office of Legislative Research and General Counsel, the Legislature, and
legislative committees;
(iii) courts, the Judicial Council, the Office of the Court Administrator, and similar
administrative units in the judicial branch;
(iv) independent state entities created under Title 63H, Independent State Entities; or
(v) the Utah Science Technology and Research Governing Authority created under
Section 
63M-2-301
.
(c) "Officer" means a person who is elected or appointed to an office or position within
a governmental entity.
(d) (i) "Personal use expenditure" means an expenditure made without the authority of
law that:
(A) is not directly related to the performance of an activity as a state officer or
employee;
(B) primarily furthers a personal interest of a state officer or employee or a state
officer's or employee's family, friend, or associate; and
(C) would constitute taxable income under federal law.
(ii) "Personal use expenditure" does not include:
(A) a de minimis or incidental expenditure; or
(B) a state vehicle or a monthly stipend for a vehicle that an officer or employee uses to
travel to and from the officer or employee's official duties, including a minimal allowance for a
detour as provided by the state.
(e) "Public funds" means the same as that term is defined in Section 
51-7-3
.
(2) A state officer or employee may not:
(a) use public funds for a personal use expenditure; or
(b) incur indebtedness or liability on behalf of, or payable by, a governmental entity for
a personal use expenditure.
(3) If the Division of Finance or the responsible governmental entity determines that a
state officer or employee has intentionally made a personal use expenditure in violation of
Subsection (2), the governmental entity shall:
(a) require the state officer or employee to deposit the amount of the personal use
expenditure into the fund or account from which:
(i) the personal use expenditure was disbursed; or
(ii) payment for the indebtedness or liability for a personal use expenditure was
disbursed;
(b) require the state officer or employee to remit an administrative penalty in an
amount equal to 50% of the personal use expenditure to the Division of Finance; and
(c) deposit the money received under Subsection (3)(b) into the General Fund.
(4) (a) Any state officer or employee who has been found by a governmental entity to
have made a personal use expenditure in violation of Subsection (2) may appeal the finding of
the governmental entity.
(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
Division of Finance shall make rules regarding an appeal process for an appeal made under
Subsection (4)(a), including the designation of an appeal authority.
(5) (a) Subject to Subsection (5)(b), the Division of Finance may withhold all or a
portion of the wages of a state officer or employee who has violated Subsection (2) until the
requirements of Subsection (3) have been met.
(b) If the state officer or employee has requested an appeal under Subsection (4), the
Division of Finance may only withhold the wages of the officer or employee after the appeal
authority described in Subsection (4)(b) has confirmed that the officer or employee violated
Subsection (2).
(6) Nothing in this chapter immunizes a state officer or employee from or precludes
any criminal prosecution or civil or employment action for an unlawful personal use
expenditure.
(7) A state officer or employee who has been convicted of misusing public money
under Section 
76-8-402
 may not disburse public funds or access public accounts.
Section 7. Section 
76-8-402
 is amended to read:
76-8-402.
Misusing public money.
(1) Every public officer of this state or a political subdivision, or of any county, city,
town, precinct, or district of this state, and every other person charged, either by law or under
contract, with the receipt, safekeeping, transfer, disbursement, or use of public money commits
an offense if the officer or other charged person:
(a) appropriates the money or any portion of it to his own use or benefit or to the use or
benefit of another without authority of law;
(b) loans or transfers the money or any portion of it without authority of law;
(c) fails to keep the money in his possession until disbursed or paid out by authority of
law;
(d) unlawfully deposits the money or any portion in any bank or with any other person;
(e) knowingly keeps any false account or makes any false entry or erasure in any
account of or relating to the money;
(f) fraudulently alters, falsifies, conceals, destroys, or obliterates any such account;
(g) willfully refuses or omits to pay over, on demand, any public money in his hands,
upon the presentation of a draft, order, or warrant drawn upon such money by competent
authority;
(h) willfully omits to transfer the money when the transfer is required by law; or
(i) willfully omits or refuses to pay over, to any officer or person authorized by law to
receive it, any money received by him under any duty imposed by law so to pay over the same.
(2) A violation of Subsection (1) is a felony of the third degree, except it is a felony of
the second degree if:
(a) the value of the money exceeds $5,000;
(b) the amount of the false account exceeds $5,000;
(c) the amount falsely entered exceeds $5,000;
(d) the amount that is the difference between the original amount and the fraudulently
altered amount exceeds $5,000; or
(e) the amount falsely erased, fraudulently concealed, destroyed, obliterated, or
falsified in the account exceeds $5,000.
(3) In addition to the penalty described in Subsection (2), a public officer who violates
Subsection (1)
:
(a)
 is subject to the penalties described in Section 
76-8-404
[
.
]
; and
(b) may not disburse public funds or access public accounts.