Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 31 (2020GS)

Sponsor

Rep. Handy, S.

Final action

Governor Signed 3/24/2020

Outcome

Became law — signed by Gov. Gary R. Herbert

Summary

What it does

• This bill:
• requires the municipal recorder to register on behalf of the municipality;
• requires the county clerk to register on behalf of the county;
• requires certain nonprofit corporations to register within six months of the end of the nonprofit corporation's fiscal year;
• enacts registration requirements for an operating charter school with affiliated satellite charter schools;
• clarifies the time frame in which a local government entity or limited purpose entity is required to send notification of a change;
• requires a local government entity or limited purpose entity to register certain contact information and term information for each governing board or commission member;
• enacts language relevant to the registration of an entity that dissolves; and
• makes technical and conforming changes.

Every vote on this bill

Bill text

LOCAL GOVERNMENT AND LIMITED PURPOSE ENTITY
REGISTRY AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Stephen G. Handy
Senate Sponsor: 
Jacob L. Anderegg
LONG TITLE
General Description:
This bill amends provisions governing the local government and limited purpose entity
registry.
Highlighted Provisions:
This bill:
▸ requires the municipal recorder to register on behalf of the municipality;
▸ requires the county clerk to register on behalf of the county;
▸ requires certain nonprofit corporations to register within six months of the end of
the nonprofit corporation's fiscal year;
▸ enacts registration requirements for an operating charter school with affiliated
satellite charter schools;
▸ clarifies the time frame in which a local government entity or limited purpose entity
is required to send notification of a change;
▸ requires a local government entity or limited purpose entity to register certain
contact information and term information for each governing board or commission
member;
▸ enacts language relevant to the registration of an entity that dissolves; and
▸ makes technical and conforming changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
10-1-204
, as enacted by Laws of Utah 2018, Chapter 256
17-15-31
, as enacted by Laws of Utah 2018, Chapter 256
51-2a-201.5
, as last amended by Laws of Utah 2018, Chapters 256 and 415
53G-5-404
, as last amended by Laws of Utah 2019, Chapters 83 and 293
67-1a-15
, as last amended by Laws of Utah 2019, Chapter 416
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
10-1-204
 is amended to read:
10-1-204.
Registration as a local government entity.
(1) 
(a)
 Each municipality shall register and maintain the municipality's registration as a
local government entity, in accordance with Section 
67-1a-15
.
(b) The municipal recorder shall register and maintain the registration on behalf of the
municipality.
(2) A municipality that fails to comply with Subsection (1) or Section 
67-1a-15
 is
subject to enforcement by the state auditor, in accordance with Section 
67-3-1
.
Section 2. Section 
17-15-31
 is amended to read:
17-15-31.
Registration as a local government entity.
(1) 
(a)
 Each county shall register and maintain the county's registration as a local
government entity, in accordance with Section 
67-1a-15
.
(b) The county clerk shall register and maintain the county's registration.
(2) A county that fails to comply with Subsection (1) or Section 
67-1a-15
 is subject to
enforcement by the state auditor, in accordance with Section 
67-3-1
.
Section 3. Section 
51-2a-201.5
 is amended to read:
51-2a-201.5.
Accounting reports required -- Reporting to state auditor --
Registration as a limited purpose entity.
(1) As used in this section:
(a) (i) "Federal pass through money" means federal money received by a nonprofit
corporation through a subaward or contract from the state or a political subdivision.
(ii) "Federal pass through money" does not include federal money received by a
nonprofit corporation as payment for goods or services purchased by the state or political
subdivision from the nonprofit corporation.
(b) (i) "Local money" means money that is owned, held, or administered by a political
subdivision of the state that is derived from fee or tax revenues.
(ii) "Local money" does not include:
(A) money received by a nonprofit corporation as payment for goods or services
purchased from the nonprofit corporation; or
(B) contributions or donations received by the political subdivision.
(c) (i) "State money" means money that is owned, held, or administered by a state
agency and derived from state fee or tax revenues.
(ii) "State money" does not include:
(A) money received by a nonprofit corporation as payment for goods or services
purchased from the nonprofit corporation; or
(B) contributions or donations received by the state agency.
(2) (a) The governing board of a nonprofit corporation whose revenues or expenditures
of federal pass through money, state money, and local money is $1,000,000 or more shall cause
an audit to be made of its accounts by an independent certified public accountant.
(b) The governing board of a nonprofit corporation whose revenues or expenditures of
federal pass through money, state money, and local money is at least $350,000 but less than
$1,000,000 shall cause a review to be made of its accounts by an independent certified public
accountant.
(c) The governing board of a nonprofit corporation whose revenues or expenditures of
federal pass through money, state money, and local money is at least $100,000 but less than
$350,000 shall cause a compilation to be made of its accounts by an independent certified
public accountant.
(d) The governing board of a nonprofit corporation whose revenues or expenditures of
federal pass through money, state money, and local money is less than $100,000 but greater
than $25,000 shall cause a fiscal report to be made in a format prescribed by the state auditor.
(3) A nonprofit corporation described in Section 
51-2a-102
 shall provide the state
auditor a copy of an accounting report prepared under this section within six months of the end
of the nonprofit corporation's fiscal year.
(4) (a) A state agency that disburses federal pass through money or state money to a
nonprofit corporation shall enter into a written agreement with the nonprofit corporation that
requires the nonprofit corporation to annually disclose whether:
(i) the nonprofit corporation met or exceeded the dollar amounts listed in Subsection
(2) in the previous fiscal year of the nonprofit corporation; or
(ii) the nonprofit corporation anticipates meeting or exceeding the dollar amounts listed
in Subsection (2) in the fiscal year the money is disbursed.
(b) If the nonprofit corporation discloses to the state agency that the nonprofit
corporation meets or exceeds the dollar amounts as described in Subsection (4)(a), the state
agency shall notify the state auditor.
(5) This section does not apply to a nonprofit corporation that is a charter school
created under Title 53G, Chapter 5, Charter Schools. A charter school is subject to the
requirements of Section 53G-5-404.
(6) A nonprofit corporation is exempt from Section 
51-2a-201
.
(7) (a) Each nonprofit corporation that receives an amount of money requiring an
accounting report under this section shall register 
in accordance with Section 
67-1a-15
 within
six months of the end of the nonprofit corporation's fiscal year
 and maintain the nonprofit
corporation's registration as a limited purpose entity[
, in accordance with Section 
67-1a-15
]
each year that the nonprofit corporation is required to prepare an account report under this
section
.
(b) A nonprofit corporation described in Subsection (7)(a) that fails to comply with
Subsection (7)(a) or Section 
67-1a-15
 is subject to enforcement by the state auditor, in
accordance with Section 
67-3-1
.
Section 4. Section 
53G-5-404
 is amended to read:
53G-5-404.
Requirements for charter schools.
(1) A charter school shall be nonsectarian in its programs, admission policies,
employment practices, and operations.
(2) A charter school may not charge tuition or fees, except those fees normally charged
by other public schools.
(3) A charter school shall meet all applicable federal, state, and local health, safety, and
civil rights requirements.
(4) (a) A charter school shall:
(i) make the same annual reports required of other public schools under this public
education code, including an annual financial audit report; and
(ii) ensure that the charter school meets the data and reporting standards described in
Section 
53E-3-501
.
(b) A charter school shall file the charter school's annual financial audit report with the
Office of the State Auditor within six months of the end of the fiscal year.
(5) (a) A charter school shall be accountable to the charter school's authorizer for
performance as provided in the school's charter agreement.
(b) To measure the performance of a charter school, an authorizer may use data
contained in:
(i) the charter school's annual financial audit report;
(ii) a report submitted by the charter school as required by statute; or
(iii) a report submitted by the charter school as required by its charter agreement.
(c) A charter school authorizer may not impose performance standards, except as
permitted by statute, that limit, infringe, or prohibit a charter school's ability to successfully
accomplish the purposes of charter schools as provided in Section 
53G-5-104
 or as otherwise
provided in law.
(6) A charter school may not advocate unlawful behavior.
(7) Except as provided in Section 
53G-5-305
, a charter school shall be organized and
managed under Title 16, Chapter 6a, Utah Revised Nonprofit Corporation Act, after its
authorization.
(8) A charter school shall provide adequate liability and other appropriate insurance.
(9) Beginning on July 1, 2014, a charter school shall submit any lease, lease-purchase
agreement, or other contract or agreement relating to the charter school's facilities or financing
of the charter school's facilities to the school's authorizer and an attorney for review and advice
prior to the charter school entering into the lease, agreement, or contract.
(10) A charter school may not employ an educator whose license has been suspended
or revoked by the state board under Section 
53E-6-604
.
(11) (a) Each charter school shall register and maintain the charter school's registration
as a limited purpose entity, in accordance with Section 
67-1a-15
.
(b) A charter school that fails to comply with Subsection (11)(a) or Section 
67-1a-15
 is
subject to enforcement by the state auditor, in accordance with Section 
67-3-1
.
(c) If a charter school is an operating charter school with affiliated satellite charter
schools, as defined in Section 
53G-5-303
:
(i) the operating charter school shall register as a limited purpose entity as defined in
Section 
67-1a-15
;
(ii) each affiliated satellite charter school is not required to register separately from the
operating charter school; and
(iii) the operating charter school shall:
(A) register on behalf of each affiliated satellite charter school; and
(B) when submitting entity registry information under Section 
67-1a-15
 on behalf of
each affiliated satellite charter school, identify and distinguish registry information for each
affiliated satellite, including the address of each affiliated satellite charter school and the name
and contact information of a primary contact for each affiliated satellite charter school.
Section 5. Section 
67-1a-15
 is amended to read:
67-1a-15.
Local government and limited purpose entity registry.
(1) As used in this section:
(a) "Entity" means a limited purpose entity or a local government entity.
(b) (i) "Limited purpose entity" means a legal entity that:
(A) performs a single governmental function or limited governmental functions; and
(B) is not a state executive branch agency, a state legislative office, or within the
judicial branch.
(ii) "Limited purpose entity" includes:
(A) area agencies, area agencies on aging, and area agencies on high risk adults, as
those terms are defined in Section 
62A-3-101
;
(B) charter schools created under Title 53G, Chapter 5, Charter Schools;
(C) community reinvestment agencies, as that term is defined in Section 
17C-1-102
;
(D) conservation districts, as that term is defined in Section 
17D-3-102
;
(E) governmental nonprofit corporations, as that term is defined in Section 
11-13a-102
;
(F) housing authorities, as that term is defined in Section 
35A-8-401
;
(G) independent entities and independent state agencies, as those terms are defined in
Section 
63E-1-102
;
(H) interlocal entities, as that term is defined in Section 
11-13-103
;
(I) local building authorities, as that term is defined in Section 
17D-2-102
;
(J) local districts, as that term is defined in Section 
17B-1-102
;
(K) local health departments, as that term is defined in Section 
26A-1-102
;
(L) local mental health authorities, as that term is defined in Section 
62A-15-102
;
(M) nonprofit corporations that receive an amount of money requiring an accounting
report under Section 
51-2a-201.5
;
(N) school districts under Title 53G, Chapter 3, School District Creation and Change;
(O) special service districts, as that term is defined in Section 
17D-1-102
; and
(P) substance abuse authorities, as that term is defined in Section 
62A-15-102
.
(c) "Local government and limited purpose entity registry" or "registry" means the
registry of local government entities and limited purpose entities created under this section.
(d) "Local government entity" means:
(i) a county, as that term is defined in Section 
17-50-101
; and
(ii) a municipality, as that term is defined in Section 
10-1-104
.
(e) "Notice of failure to register" means the notice the lieutenant governor sends, in
accordance with Subsection (7)(a), to an entity that does not register.
(f) "Notice of failure to renew" means the notice the lieutenant governor sends to a
registered entity, in accordance with Subsection (7)(b).
(g) "Notice of noncompliance" means the notice the lieutenant governor sends to a
registered entity, in accordance with Subsection (6)(c).
(h) "Notice of non-registration" means the notice the lieutenant governor sends to an
entity and the state auditor, in accordance with Subsection (9).
(i) "Notice of registration or renewal" means the notice the lieutenant governor sends,
in accordance with Subsection (6)(b)(i).
(j) "Registered entity" means an entity with a valid registration as described in
Subsection (8).
(2) The lieutenant governor shall:
(a) create a registry of each local government entity and limited purpose entity within
the state that:
(i) contains the information described in Subsection (4); and
(ii) is accessible on the lieutenant governor's website or otherwise publicly available;
and
(b) establish fees for registration and renewal, in accordance with Section 
63J-1-504
,
based on and to directly offset the cost of creating, administering, and maintaining the registry.
(3) Each local government entity and limited purpose entity shall:
(a) on or before July 1, 2019, register with the lieutenant governor as described in
Subsection (4);
(b) on or before one year after the day on which the lieutenant governor issues the
notice of registration or renewal, annually renew the entity's registration in accordance with
Subsection (5); and
(c) [
within
] 
on or before
days after the day on which any of the information
described in Subsection (4) changes, send notice of the changes to the lieutenant governor.
(4) Each entity shall include the following information in the entity's registration
submission:
(a) the resolution or other legal or formal document creating the entity or, if the
resolution or other legal or formal document creating the entity cannot be located, conclusive
proof of the entity's lawful creation;
(b) if the entity has geographic boundaries, a map or plat [
establishing
] 
identifying
 the
current
 geographic boundaries of the entity, or if it is impossible or unreasonably expensive to
create a map or plat, a metes and bounds description, or another legal description that identifies
the 
current
 boundaries of the entity[
, reasonable proof of the entity's geographic boundaries
];
(c) the entity's name;
(d) the entity's type of local government entity or limited purpose entity;
(e) the entity's governmental function;
(f) the entity's website, physical address, and phone number, including the name and
contact information of an individual whom the entity designates as the primary contact for the
entity;
(g) 
(i)
 names
, email addresses, and phone numbers
 of the members of the entity's
governing board or commission, managing officers, or other similar managers and the method
by which the members or officers are appointed, elected, or otherwise designated;
(ii) the date of the most recent appointment or election of each entity governing board
or commission member; and
(iii) the date of the anticipated end of each entity governing board or commission
member's term;
(h) the entity's sources of revenue; and
(i) if the entity has created an assessment area, as that term is defined in Section
11-42-102
, information regarding the creation, purpose, and boundaries of the assessment area.
(5) Each entity shall include the following information in the entity's renewal
submission:
(a) identify and update any incorrect or outdated information the entity previously
submitted during registration under Subsection (4); or
(b) certify that the information the entity previously submitted during registration under
Subsection (4) is correct without change.
(6) Within 30 days of receiving an entity's registration or renewal submission, the
lieutenant governor shall:
(a) review the submission to determine compliance with Subsection (4) or (5);
(b) if the lieutenant governor determines that the entity's submission complies with
Subsection (4) or (5):
(i) send a notice of registration or renewal that includes the information that the entity
submitted under Subsection (4) or (5) to:
(A) the registering or renewing entity;
(B) each county in which the entity operates, either in whole or in part, or where the
entity's geographic boundaries overlap or are contained within the boundaries of the county;
(C) the Division of Archives and Records Service; and
(D) the Office of the Utah State Auditor; and
(ii) publish the information from the submission on the registry
, except any email
address or phone number that is personal information as defined in Section 
63G-2-303
; and
(c) if the lieutenant governor determines that the entity's submission does not comply
with Subsection (4) or (5) or is otherwise inaccurate or deficient, send a notice of
noncompliance to the registering or renewing entity that:
(i) identifies each deficiency in the entity's submission with the corresponding statutory
requirement;
(ii) establishes a deadline to cure the entity's noncompliance that is the first business
day that is at least 30 calendar days after the day on which the lieutenant governor sends the
notice of noncompliance; and
(iii) states that failure to comply by the deadline the lieutenant governor establishes
under Subsection (6)(c)(ii) will result in the lieutenant governor sending a notice of
non-registration to the Office of the Utah State Auditor, in accordance with Subsection (9).
(7) (a) If the lieutenant governor identifies an entity that does not make a registration
submission in accordance with Subsection (4) by the deadline described in Subsection (3), the
lieutenant governor shall send a notice of failure to register to the registered entity that:
(i) identifies the statutorily required registration deadline described in Subsection (3)
that the entity did not meet;
(ii) establishes a deadline to cure the entity's failure to register that is the first business
day that is at least 10 calendar days after the day on which the lieutenant governor sends the
notice of failure to register; and
(iii) states that failure to comply by the deadline the lieutenant governor establishes
under Subsection (7)(a)(ii) will result in the lieutenant governor sending a notice of
non-registration to the Office of the Utah State Auditor, in accordance with Subsection (9).
(b) If a registered entity does not make a renewal submission in accordance with
Subsection (5) by the deadline described in Subsection (3), the lieutenant governor shall send a
notice of failure to renew to the registered entity that:
(i) identifies the renewal deadline described in Subsection (3) that the entity did not
meet;
(ii) establishes a deadline to cure the entity's failure to renew that is the first business
day that is at least 30 calendar days after the day on which the lieutenant governor sends the
notice of failure to renew; and
(iii) states that failure to comply by the deadline the lieutenant governor establishes
under Subsection (7)(b)(ii) will result in the lieutenant governor sending a notice of
non-registration to the Office of the Utah State Auditor, in accordance with Subsection (9).
(8) An entity's registration is valid:
(a) if the entity makes a registration or renewal submission in accordance with the
deadlines described in Subsection (3);
(b) during the period the lieutenant governor establishes in the notice of
noncompliance or notice of failure to renew during which the entity may cure the identified
registration deficiencies; and
(c) for one year beginning on the day the lieutenant governor issues the notice of
registration or renewal.
(9) (a) The lieutenant governor shall send a notice of non-registration to the Office of
the Utah State Auditor if an entity fails to:
(i) cure the entity's noncompliance by the deadline the lieutenant governor establishes
in the notice of noncompliance;
(ii) register by the deadline the lieutenant governor establishes in the notice of failure
to register; or
(iii) cure the entity's failure to renew by the deadline the lieutenant governor establishes
in the notice of failure to renew.
(b) The lieutenant governor shall ensure that the notice of non-registration:
(i) includes a copy of the notice of noncompliance, the notice of failure to register, or
the notice of failure to renew; and
(ii) requests that the state auditor withhold state allocated funds or the disbursement of
property taxes and prohibit the entity from accessing money held by the state or money held in
an account of a financial institution, in accordance with Subsections 
67-3-1
(7)(i) and
67-3-1
(10).
(10) The lieutenant governor may extend a deadline under this section if an entity
notifies the lieutenant governor, before the deadline to be extended, of the existence of an
extenuating circumstance that is outside the control of the entity.
(11) (a) An entity is not required to renew submission of a registration under this
section if an entity provides a record of dissolution.
(b) The lieutenant governor shall include in the registry an entity's record of dissolution
and indicate on the registry that the entity is dissolved.