Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 50 (2021GS)

Sponsor

Rep. Dunnigan, J.

Final action

Governor Signed 3/11/2021

Outcome

Became law — signed by Gov. Spencer J. Cox

Summary

What it does

• This bill:
• defines terms;
• authorizes the state risk manager to create one or more captive insurance companies;
• requires the risk manager to coordinate and cooperate with any covered entity having responsibility for risk control and safety of school districts and charter schools;
• authorizes school districts, charter schools, the Utah Communications Authority, and the Utah State Fair Corporation to participate in any captive insurance company created by the risk manager; and
• makes technical changes.

Every vote on this bill

Bill text

GOVERNMENT INSURANCE AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: James A. Dunnigan
Senate Sponsor: 
Curtis S. Bramble
LONG TITLE
General Description:
This bill makes changes to the Administrative Services Code, Independent Entities
Code, and Independent State Entities relating to risk management.
Highlighted Provisions:
This bill:
▸ defines terms;
▸ authorizes the state risk manager to create one or more captive insurance
companies;
▸ requires the risk manager to coordinate and cooperate with any covered entity
having responsibility for risk control and safety of school districts and charter
schools;
▸ authorizes school districts, charter schools, the Utah Communications Authority,
and the Utah State Fair Corporation to participate in any captive insurance company
created by the risk manager; and
▸ makes technical changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
31A-12-101
, as last amended by Laws of Utah 1993, Chapter 212
51-7-2
, as last amended by Laws of Utah 2018, Chapters 207 and 404
63A-4-102
, as last amended by Laws of Utah 2009, Chapter 183
63A-4-103
, as last amended by Laws of Utah 2020, Chapter 365
63A-4-201
, as last amended by Laws of Utah 2011, Chapter 303
63A-4-202
, as renumbered and amended by Laws of Utah 1993, Chapter 212
63A-4-204
, as last amended by Laws of Utah 2018, Chapter 415
63A-4-204.5
, as last amended by Laws of Utah 2018, Chapter 415
63A-4-205.5
, as last amended by Laws of Utah 2015, Chapter 411
63E-1-304
, as enacted by Laws of Utah 2013, Chapter 220
63G-7-605
, as last amended by Laws of Utah 2018, Second Special Session, Chapter 9
63G-10-501
, as enacted by Laws of Utah 2015, Chapter 355
63H-6-103
, as last amended by Laws of Utah 2020, Chapter 152
ENACTS:
63A-4-101.1
, Utah Code Annotated 1953
63A-4-208
, Utah Code Annotated 1953
RENUMBERS AND AMENDS:
63A-4-101.5
, (Renumbered from 63A-4-101, as last amended by Laws of Utah 2006,
Chapter 275)
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
31A-12-101
 is amended to read:
31A-12-101.
Definitions.
As used in this chapter:
(1) "Risk Management Fund" means the fund created under Section 
63A-4-201
.
(2) "Risk manager" means the person appointed under Section [
63A-4-101
]
63A-4-101.5
.
Section 2. Section 
51-7-2
 is amended to read:
51-7-2.
Exemptions from chapter.
The following funds are exempt from this chapter:
(1) funds invested in accordance with the participating employees' designation or
direction pursuant to a public employees' deferred compensation plan established and operated
in compliance with Section 457 of the Internal Revenue Code of 1986, as amended;
(2) funds of the Utah State Retirement Board;
(3) funds of the Utah Housing Corporation;
(4) endowment funds of higher education institutions;
(5) permanent and other land grant trust funds established pursuant to the Utah
Enabling Act and the Utah Constitution;
(6) the State Post-Retirement Benefits Trust Fund;
(7) the funds of the Utah Educational Savings Plan;
(8) funds of the permanent state trust fund created by and operated under Utah
Constitution, Article XXII, Section 4;
(9) the funds in the Navajo Trust Fund;
(10) the funds in the Radioactive Waste Perpetual Care and Maintenance Account;
(11) the funds in the Employers' Reinsurance Fund;
(12) the funds in the Uninsured Employers' Fund; [
and
]
(13) the Utah State Developmental Center Long-Term Sustainability Fund, created in
Section 
62A-5-206.7
[
.
]
; and
(14) the funds in the Risk Management Fund created in Section 
63A-4-201
.
Section 3. Section 
63A-4-101.1
 is enacted to read:
 63A-4-101.1.
Definitions.
As used in this chapter:
(1) "Captive insurance company" means the same as that term is defined in Section
31A-37-102
.
(2) "Covered entity" means a participating entity of:
(a) the Risk Management Fund; or
(b) any captive insurance company created by the risk manager.
Section 4. Section 
63A-4-101.5
, which is renumbered from Section 63A-4-101 is
renumbered and amended to read:
[
63A-4-101
].
 63A-4-101.5.
Risk manager -- Appointment -- Duties.
(1) The executive director shall appoint a risk manager, who shall be qualified by
education and experience in the management of general property and casualty insurance.
(2) The risk manager shall:
(a) 
except as provided in Subsection (4),
 acquire and administer the following
purchased by the state 
or any captive insurance company created by the risk manager
:
[
(i) all property, casualty insurance; and
]
(i) all property and casualty insurance;
(ii) reinsurance of property and casualty insurance; and
[
(ii)
] 
(iii)
 subject to Section 
34A-2-203
, workers' compensation insurance;
(b) recommend that the executive director make rules:
(i) prescribing reasonable and objective underwriting and risk control standards for
[
state agencies;
]
:
(A) all covered entities of the Risk Management Fund; and
(B) any captive insurance company created by the risk manager;
(ii) prescribing the risks to be covered by the Risk Management Fund and the extent to
which these risks will be covered;
(iii) prescribing the properties, risks, deductibles, and amount limits eligible for
payment out of the [
fund
] 
Risk Management Fund
;
(iv) prescribing procedures for making claims and proof of loss; and
(v) establishing procedures for the resolution of disputes relating to coverage or claims,
which may include binding arbitration;
(c) implement a risk management and loss prevention program for [
state agencies
]
covered entities
 for the purpose of reducing risks, accidents, and losses to assist [
state officers
and employees
] 
covered entities
 in fulfilling their responsibilities for risk control and safety;
(d) coordinate and cooperate with any [
state agency
] 
covered entity
 having
responsibility to manage and protect state properties, including:
(i) the state fire marshal;
(ii) the director of the Division of Facilities Construction and Management;
(iii) the Department of Public Safety; [
and
]
(iv) institutions of higher education;
(v) school districts; and
(vi) charter schools;
(e) maintain records necessary to fulfill the requirements of this section;
(f) manage the [
fund
] 
Risk Management Fund and any captive insurance company
created by the risk manager
 in accordance with economically and actuarially sound principles
to produce adequate reserves for the payment of contingencies, including unpaid and
unreported claims, and may purchase any insurance or reinsurance considered necessary to
accomplish this objective; and
(g) inform the [
agency's
] 
covered entity's
 governing body and the governor when any
[
agency
] 
covered entity
 fails or refuses to comply with reasonable risk control
recommendations made by the risk manager.
(3) Before the effective date of any rule, the risk manager shall provide a copy of the
rule to each [
agency
] 
covered entity
 affected by it.
(4) The risk manager may not use a captive insurance company created by the risk
manager to purchase:
(a) workers' compensation insurance;
(b) health insurance; or
(c) life insurance.
Section 5. Section 
63A-4-102
 is amended to read:
63A-4-102.
Risk manager -- Powers.
(1) The risk manager may:
(a) enter into contracts;
(b) form one or more captive insurance companies authorized under Title 31A, Chapter
37, Captive Insurance Companies Act;
[
(b)
] 
(c)
 purchase insurance 
or reinsurance
;
[
(c)
] 
(d)
 adjust, settle, and pay claims;
[
(d)
] 
(e)
 pay expenses and costs;
[
(e)
] 
(f)
 study the risks of all [
state agencies
] 
covered entities
 and properties;
[
(f)
] 
(g)
 issue certificates of coverage [
to state agencies for
] 
or insurance for covered
entities with respect to
 any risks covered by 
the
 Risk Management Fund 
or any captive
insurance company created by the risk manager
;
[
(g)
] 
(h)
 make recommendations about risk management and risk reduction strategies
to [
state agencies
] 
covered entities
;
[
(h)
] 
(i)
 in consultation with the attorney general, prescribe insurance
, indemnification,
and liability provisions to be included in all state contracts;
[
(i)
] 
(j)
 review [
agency
] 
covered entity
 building construction, major remodeling plans,
agency program plans, and make recommendations to the agency about needed changes to
address risk considerations;
[
(j)
] 
(k)
 attend agency planning and management meetings when necessary;
[
(k)
] 
(l)
 review any proposed legislation and communicate with legislators and
legislative committees about the liability or risk management issues connected with any
legislation; and
[
(l)
] 
(m)
 solicit any needed information about agency plans, agency programs, or
agency risks necessary to perform the risk manager's responsibilities under this part.
(2) (a) The risk manager may expend money from the Risk Management Fund to
procure and provide coverage to all [
state agencies
] 
covered entities
 and their indemnified
employees, except those [
agencies
] 
entities
 or employees specifically exempted by statute.
(b) The risk manager shall apportion the costs of that coverage according to the
requirements of this part.
(3) Before charging a rate, fee, or other amount to an executive branch agency, or to a
subscriber of services other than an executive branch agency, the director shall:
(a) submit the proposed rates, fees, or other amount and cost analysis to the Rate
Committee established in Section 
63A-1-114
; and
(b) obtain the approval of the Legislature as required by Section 
63J-1-410
.
(4) The director shall conduct a market analysis by July 1, 2005, and periodically
thereafter, of proposed rates and fees, which analysis shall include a comparison of the
division's rates and fees with the fees of other public or private sector providers where
comparable services and rates are reasonably available.
Section 6. Section 
63A-4-103
 is amended to read:
63A-4-103.
Risk management -- Duties of covered entities.
(1) (a) Unless [
specifically
] 
expressly
 authorized by statute [
to do so, a state agency
]
, a
covered entity
 may not:
(i) purchase insurance or self-fund any risk unless authorized by the risk manager; or
(ii) procure or provide liability insurance for the state.
(b) (i) Notwithstanding the provisions of Subsection (1)(a), the Utah Board of Higher
Education may authorize higher education institutions to purchase insurance for, or self-fund,
risks associated with their programs and activities that are not covered through the risk
manager.
(ii) The Utah Board of Higher Education shall provide copies of those purchased
policies to the risk manager.
(iii) The Utah Board of Higher Education shall ensure that the state is named as
additional insured on any of those policies.
(2) Each [
state agency
] 
covered entity
 shall:
(a) comply with reasonable risk related recommendations made by the risk manager;
(b) participate in risk management training activities conducted or sponsored by the
risk manager;
(c) include the insurance
, indemnification,
 and liability provisions prescribed by the
risk manager in all state contracts, together with a statement certifying to the other party to the
contract that the insurance and liability provisions in the contract are those prescribed by the
risk manager;
(d) [
at each principal design stage,
] 
upon request of the risk manager,
 provide written
notice to the risk manager that construction and major remodeling plans relating to [
agency
]
covered entity
 buildings and facilities to be covered by the [
fund
] 
Risk Management Fund
 are
available for review 
at each principal design stage
, for risk control purposes, and make them
available to the risk manager for [
his
] review and 
to provide
 recommendations; and
(e) cooperate fully with requests from the risk manager for [
agency
] 
covered entity
planning, program, or risk related information, and allow the risk manager to attend [
agency
]
covered entity
 planning and management meetings.
(3) Failure to include in the contract the provisions required by Subsection (2)(c) does
not make the contract unenforceable by the state.
Section 7. Section 
63A-4-201
 is amended to read:
63A-4-201.
Risk Management Fund created -- Administration -- Use.
(1) (a) There is created the Risk Management Fund, which shall be administered by the
risk manager.
(b) The fund shall cover property, liability, fidelity, and other risks as determined by
the risk manager in consultation with the executive director.
(2) The risk manager may only use the [
fund
] 
Risk Management Fund
 to pay:
(a) insurance or reinsurance premiums;
(b) costs of administering the [
fund
] 
Risk Management Fund and any captive insurance
companies created by the risk manager
;
(c) loss adjustment expenses;
(d) risk control and related educational and training expenses; and
(e) loss costs which at the time of loss were eligible for payment under rules previously
issued by the executive director under the authority of Section [
63A-4-101
] 
63A-4-101.5
.
(3) In addition to any money appropriated to the [
fund
] 
Risk Management Fund
 by the
Legislature, the risk manager shall deposit with the state treasurer for credit to the [
fund
] 
Risk
Management Fund
:
(a) any insured loss or loss expenses paid by insurance or reinsurance companies;
(b) the gross amount of all premiums and surcharges received under Section
63A-4-202
;
(c) the net refunds from cancelled insurance policies necessary to self-insure previously
insured risks, with the balance of the proceeds to be refunded to the previously insured
[
agencies
] 
entities
;
(d) all refunds, returns, or dividends from insurance carriers not specifically covered in
Subsections (3)(a), (b), and (c);
(e) savings from amounts otherwise appropriated for participation in the fund; and
(f) all net proceeds from sale of salvage and subrogation recoveries from adverse
parties related to losses paid out of the fund.
[
(4) (a) Pending disbursement, the risk manager shall provide surplus money in the
fund to the state treasurer for investment as provided in Title 51, Chapter 7, State Money
Management Act.
]
[
(b) The state treasurer shall deposit all interest earned on invested fund money into the
fund.
]
(4) The state treasurer shall invest the Risk Management Fund in accordance with
Section 
63A-4-208
 and deposit all interest or other income earned from investments into the
Risk Management Fund.
Section 8. Section 
63A-4-202
 is amended to read:
63A-4-202.
Determination of insurance premiums -- Information furnished by
covered entities -- Notice to covered entities.
(1) Each [
agency
] 
covered entity
 shall provide the risk manager with all reasonable
information necessary to compute insurance premiums whenever [
he
] 
the risk manager
requests that information [
from them
].
(2) (a) The risk manager shall charge to each [
agency
] 
entity
 that receives insurance
coverage from the Risk Management Fund 
or any captive insurance company created by the
risk manager
 its proportionate share of the cost incurred based upon actuarially sound rating
techniques.
(b) [
That premium
] 
The risk manager
 shall include 
in the premium determined under
this section
 all costs of operating the [
fund
] 
Risk Management Fund
 as stated in Section
63A-4-201
and operating any captive insurance company created by the risk manager
.
(3) To enable each [
participating agency
] 
covered entity
 to meet its budgeting
requirements, the risk manager shall provide each [
participating agency
] 
covered entity
 with
projected insurance costs for the next two fiscal years within the time limits required.
Section 9. Section 
63A-4-204
 is amended to read:
63A-4-204.
School district participation in Risk Management Fund.
(1) (a) For the purpose of this section, action by a public school district shall be taken
upon resolution by a majority of the members of the school district's board of education.
(b) (i) Upon approval by the state risk manager and the board of education of the
school district, a public school district may participate in the Risk Management Fund 
or any
captive insurance company created by the risk manager,
 and may permit a foundation
established under Section 
53E-3-403
 to participate in the Risk Management Fund 
or any
captive insurance company created by the risk manager
.
(ii) Upon approval by the state risk manager and the State Board of Education, a state
public education foundation may participate in the Risk Management Fund 
or any captive
insurance company created by the risk manager
.
(c) Subject to any cancellation or other applicable coverage provisions, either the state
risk manager or the public school district may terminate participation in the [
fund
] 
Risk
Management Fund
.
(2) The state risk manager shall contract for all insurance, 
reinsurance,
 legal, loss
adjustment, consulting, loss control, safety, and other related services necessary to support the
insurance [
program
] 
programs
 provided to a participating public school district, except that all
supporting legal services are subject to the prior approval of the state attorney general.
[
(3) (a) The state risk manager shall treat each participating public school district as a
state agency when participating in the Risk Management Fund.
]
[
(b)
] 
(3)
 Each public school district participating in the [
fund
] 
Risk Management Fund
shall comply with [
the provisions of this part that affect state agencies
] 
Section 
63A-4-103
.
(4) (a) Each year, the risk manager shall prepare, in writing, the information required
by Subsection (4)(b) regarding the coverage against legal liability provided a school district
employee of this state:
(i) by the Risk Management Fund 
or any captive insurance company created by the risk
manager
;
(ii) under Title 63G, Chapter 7, Governmental Immunity Act of Utah; and
(iii) under Title 52, Chapter 6, Reimbursement of Legal Fees and Costs to Officers and
Employees Act.
(b) (i) The information described in Subsection (4)(a) shall include:
(A) the eligibility requirements, if any, to receive the coverage;
(B) the basic nature of the coverage for a school district employee, including what is
not covered; and
(C) whether the coverage is primary or in excess of any other coverage the risk
manager knows is commonly available to a school district employee in this state.
(ii) The information described in Subsection (4)(a) may include:
(A) comparisons the risk manager considers beneficial to a school district employee
between:
(I) the coverage described in Subsection (4)(a); and
(II) other coverage the risk manager knows is commonly available to a school district
employee in this state; and
(B) any other information the risk manager considers appropriate.
(c) By no later than July 1 of each year, the risk manager shall provide the information
prepared under this Subsection (4) to each school district that participates in the Risk
Management Fund 
or any captive insurance company created by the risk manager
.
(d) A school district that participates in the Risk Management Fund shall provide a
copy of the information described in Subsection (4)(c) to each school district employee within
the school district no later than the first day of each school year.
(e) If a school district hires an employee after the first day of the school year, no later
than 10 days after the day on which the employee is hired, the school district shall provide the
information described in Subsection (4)(c) to the employee.
Section 10. Section 
63A-4-204.5
 is amended to read:
63A-4-204.5.
Charter school participation in Risk Management Fund.
(1) A charter school established under the authority of Title 53G, Chapter 5, Charter
Schools, may participate in the Risk Management Fund 
or any captive insurance company
created by the risk manager
 upon the approval of the state risk manager and the governing body
of the charter school.
[
(2) (a) For purposes of administration, the state risk manager shall treat each charter
school participating in the fund as a state agency.
]
[
(b)
] 
(2)
 Each charter school participating in the [
fund
] 
Risk Management Fund
 shall
comply with [
the provisions of this part that affect state agencies
] 
Section 
63A-4-103
.
(3) (a) Each year, the risk manager shall prepare, in writing, the information required
by Subsection (3)(b) regarding the coverage against legal liability provided a charter school
employee of this state:
(i) by the Risk Management Fund 
or any captive insurance company created by the risk
manager
;
(ii) under Title 63G, Chapter 7, Governmental Immunity Act of Utah; and
(iii) under Title 52, Chapter 6, Reimbursement of Legal Fees and Costs to Officers and
Employees Act.
(b) (i) The information described in Subsection (3)(a) shall include:
(A) the eligibility requirements, if any, to receive the coverage;
(B) the basic nature of the coverage for a charter school employee, including what is
not covered; and
(C) whether the coverage is primary or in excess of any other coverage the risk
manager knows is commonly available to a charter school employee in this state.
(ii) The information described in Subsection (3)(a) may include:
(A) comparisons the risk manager considers beneficial to a charter school employee
between:
(I) the coverage described in Subsection (3)(a); and
(II) other coverage the risk manager knows is commonly available to a charter school
employee in this state; and
(B) any other information the risk manager considers appropriate.
(c) By no later than July 1 of each year, the risk manager shall provide the information
prepared under this Subsection (3) to each charter school that participates in the Risk
Management Fund 
or any captive insurance company created by the risk manager
.
(d) A charter school that participates in the Risk Management Fund 
or any captive
insurance company created by the risk manager
 shall provide a copy of the information
described in Subsection (3)(c) to each charter school employee within the charter school no
later than the first day of each school year.
(e) If a charter school hires an employee after the first day of the school year, no later
than 10 days after the day on which the employee is hired, the charter school shall provide the
information described in Subsection (3)(c) to the employee.
Section 11. Section 
63A-4-205.5
 is amended to read:
63A-4-205.5.
Risk management -- Coverage of the Utah Communications
Authority.
The Utah Communications Authority established under authority of Title 63H, Chapter
7a, Utah Communications Authority Act, may participate in the Risk Management Fund 
or any
captive insurance company created by the risk manager
.
Section 12. Section 
63A-4-208
 is enacted to read:
 63A-4-208.
Investment of Risk Management Fund.
(1) The state treasurer shall invest the assets of the Risk Management Fund created
under Section 
63A-4-201
 with the primary goal of providing for the stability, income, and
growth of the principal.
(2) Nothing in this section requires a specific outcome in investing.
(3) The state treasurer may deduct any administrative costs incurred in managing fund
assets from earnings before distributing the earnings.
(4) (a) The state treasurer may employ professional asset managers to assist in the
investment of the assets of the funds.
(b) The treasurer may only provide compensation to asset managers from earnings
generated by the funds' investments.
(5) (a) The state treasurer shall invest and manage the assets of the funds as a prudent
investor would by:
(i) considering the purposes, terms, distribution requirements, and other circumstances
of the funds; and
(ii) exercising reasonable care, skill, and caution in order to meet the standard of care
of a prudent investor.
(b) In determining whether the state treasurer has met the standard of care of a prudent
investor, the judge or finder of fact shall:
(i) consider the state treasurer's actions in light of the facts and circumstances existing
at the time of the investment decision or action, and not by hindsight; and
(ii) evaluate the state treasurer's investment and management decisions respecting
individual assets:
(A) not in isolation, but in the context of a fund portfolio as a whole; and
(B) as a part of an overall investment strategy that has risk and return objectives
reasonably suited to the funds.
Section 13. Section 
63E-1-304
 is amended to read:
63E-1-304.
Limitations on risk management coverage.
(1) Except as specifically modified in its authorizing statute, an independent entity is
not eligible to receive coverage under the Risk Management Fund created by Section
63A-4-201
or any captive insurance company created by the risk manager
.
(2) If an independent entity that receives coverage under the Risk Management Fund 
or
any captive insurance company created by the risk manager
 is involved in a commercial
activity, the state risk manager may require that the entity:
(a) procure commercial insurance coverage or provide proof of vendor's insurance
coverage for the commercial activity; and
(b) comply with loss prevention measures specified by the state risk manager.
Section 14. Section 
63G-7-605
 is amended to read:
63G-7-605.
Adjustments to limitation of judgment amounts.
(1) As used in this section:
(a) "Adjusted consumer price factor" means what the consumer price index would be
without the medical care component and the medical services component.
(b) "Aggregate limit" means the limit on the aggregate amount of personal injury
damages claims from a single occurrence, as provided in Subsection 
63G-7-604
(1)(d).
(c) "Applicable index" means:
(i) the consumer price index, for a calculation of the percentage change in the
consumer price index;
(ii) the adjusted consumer price factor, for a calculation of the percentage change in the
adjusted consumer price factor;
(iii) the medical care component, for a calculation of the percentage change in the
medical care component; or
(iv) the medical services component, for a calculation of the percentage change in the
medical services component.
(d) "Base applicable index" means an applicable index for the year that is three years
before the year in which the legislative fiscal analyst calculates new limits under this section.
(e) "Consumer price index" means the annual index reported by the United States
Bureau of Labor Statistics for consumer prices for all urban consumers, not seasonally
adjusted.
(f) "Individual limit" means the limit on the amount of a judgment for damages for
personal injury, as provided in Subsection 
63G-7-604
(1)(a).
(g) "Latest aggregate limit" means the aggregate limit, as last adjusted by the risk
manager under this section.
(h) "Latest individual limit" means the individual limit, as last adjusted by the risk
manager under this section.
(i) "Latest property damage limit" means the property damage limit, as last adjusted by
the risk manager under this section.
(j) "Medical care component" means the medical care sub-index of the consumer price
index.
(k) "Medical services component" means the medical care services sub-index of the
consumer price index.
(l) "Percentage change" means the amount of change between the base applicable index
and the applicable index for the year before the year in which the legislative fiscal analyst
calculates new limits under this section, expressed as a percentage of the base applicable index.
(m) "Property damage limit" means the limit on the amount of a judgment for property
damage, as provided in Subsection 
63G-7-604
(1)(c).
(n) "Risk manager" means the state risk manager appointed under Section [
63A-4-101
]
63A-4-101.5
.
(2) Each even-numbered year, the legislative fiscal analyst shall, subject to Subsection
(3):
(a) calculate a new individual limit by adding to the latest individual limit the sum of:
(i) 66.5% of the latest individual limit, multiplied by the percentage change in the
adjusted consumer price factor;
(ii) 16.75% of the latest individual limit, multiplied by the percentage change in the
medical care component; and
(iii) 16.75% of the latest individual limit, multiplied by the percentage change in the
medical services component;
(b) calculate a new aggregate limit by adding to the latest aggregate limit the sum of:
(i) 66.5% of the latest aggregate limit, multiplied by the percentage change in the
adjusted consumer price factor;
(ii) 16.75% of the latest aggregate limit, multiplied by the percentage change in the
medical care component; and
(iii) 16.75% of the latest aggregate limit, multiplied by the percentage change in the
medical services component;
(c) calculate a new property damage limit by adding to the latest property damage limit
the amount of the latest property damage limit multiplied by the percentage change in the
consumer price index;
(d) round up to the nearest $100 the individual limit, aggregate limit, and property
damage limit calculated under Subsections (2)(a), (b), and (c); and
(e) no later than May 1, communicate the newly calculated limits under Subsections
(2)(a), (b), and (c) to the risk manager.
(3) The newly calculated individual limit, aggregate limit, or property damage limit
under Subsection (2) may not be less than the amount of the limit before the new calculation
under Subsection (2).
(4) (a) Each even-numbered year, the risk manager shall make rules, to become
effective no later than July 1 of that year, that establish a new individual limit, aggregate limit,
and property damage limit, as calculated under Subsection (2).
(b) A newly calculated individual limit, aggregate limit, or property damage limit under
this section has prospective effect only from the date the rules establishing the new limit take
effect.
(c) An individual limit, aggregate limit, or property damage limit, as newly calculated
under this section, applies only to a claim for injury or loss that occurs after the effective date
of the rules that establish the newly calculated limit.
Section 15. Section 
63G-10-501
 is amended to read:
63G-10-501.
Definitions.
As used in this part:
(1) "Executive director" means the individual appointed under Section 
63A-1-105
 as
the executive director of the Department of Administrative Services, created in Section
63A-1-104
.
(2) "Risk management fund" means the fund created in Section 
63A-4-201
.
(3) "Risk manager" means the state risk manager appointed under Section [
63A-4-101
]
63A-4-101.5
.
Section 16. Section 
63H-6-103
 is amended to read:
63H-6-103.
Utah State Fair Corporation -- Legal status -- Powers.
(1) There is created an independent public nonprofit corporation known as the "Utah
State Fair Corporation."
(2) The board shall file articles of incorporation for the corporation with the Division
of Corporations and Commercial Code.
(3) The corporation, subject to this chapter, has all powers and authority permitted
nonprofit corporations by law.
(4) The corporation shall:
(a) manage, supervise, and control:
(i) all activities relating to the annual exhibition described in Subsection (4)(j); and
(ii) except as otherwise provided by statute, all state expositions, including setting the
time, place, and purpose of any state exposition;
(b) for public entertainment, displays, and exhibits or similar events:
(i) provide, sponsor, or arrange the events;
(ii) publicize and promote the events; and
(iii) secure funds to cover the cost of the exhibits from:
(A) private contributions;
(B) public appropriations;
(C) admission charges; and
(D) other lawful means;
(c) acquire and designate exposition sites;
(d) use generally accepted accounting principles in accounting for the corporation's
assets, liabilities, and operations;
(e) seek corporate sponsorships for the state fair park or for individual buildings or
facilities within the fair park;
(f) work with county and municipal governments, the Salt Lake Convention and
Visitor's Bureau, the Utah Travel Council, and other entities to develop and promote
expositions and the use of the state fair park;
(g) develop and maintain a marketing program to promote expositions and the use of
the state fair park;
(h) in accordance with provisions of this part, operate and maintain the state fair park,
including the physical appearance and structural integrity of the state fair park and the
buildings located at the state fair park;
(i) prepare an economic development plan for the state fair park;
(j) hold an annual exhibition that:
(i) is called the state fair or a similar name;
(ii) promotes and highlights agriculture throughout the state;
(iii) includes expositions of livestock, poultry, agricultural, domestic science,
horticultural, floricultural, mineral and industrial products, manufactured articles, and domestic
animals that, in the corporation's opinion will best stimulate agricultural, industrial, artistic, and
educational pursuits and the sharing of talents among the people of Utah;
(iv) includes the award of premiums for the best specimens of the exhibited articles
and animals;
(v) permits competition by livestock exhibited by citizens of other states and territories
of the United States; and
(vi) is arranged according to plans approved by the board;
(k) fix the conditions of entry to the annual exhibition described in Subsection (4)(j);
and
(l) publish a list of premiums that will be awarded at the annual exhibition described in
Subsection (4)(j) for the best specimens of exhibited articles and animals.
(5) In addition to the annual exhibition described in Subsection (4)(j), the corporation
may hold other exhibitions of livestock, poultry, agricultural, domestic science, horticultural,
floricultural, mineral and industrial products, manufactured articles, and domestic animals that,
in the corporation's opinion, will best stimulate agricultural, industrial, artistic, and educational
pursuits and the sharing of talents among the people of Utah.
(6) The corporation may:
(a) employ advisers, consultants, and agents, including financial experts and
independent legal counsel, and fix their compensation;
(b) (i) participate in the state's Risk Management Fund created under Section
63A-4-201
or any captive insurance company created by the risk manager
; or
(ii) procure insurance against any loss in connection with the corporation's property
and other assets, including mortgage loans;
(c) receive and accept aid or contributions of money, property, labor, or other things of
value from any source, including any grants or appropriations from any department, agency, or
instrumentality of the United States or Utah;
(d) hold, use, loan, grant, and apply that aid and those contributions to carry out the
purposes of the corporation, subject to the conditions, if any, upon which the aid and
contributions were made;
(e) enter into management agreements with any person or entity for the performance of
the corporation's functions or powers;
(f) establish whatever accounts and procedures as necessary to budget, receive, and
disburse, account for, and audit all funds received, appropriated, or generated;
(g) subject to Subsection (8), lease any of the facilities at the state fair park;
(h) sponsor events as approved by the board; and
(i) enter into one or more agreements to develop the state fair park.
(7) (a) Except as provided in Subsection (7)(c), as an independent agency of Utah, the
corporation is exempt from:
(i) Title 51, Chapter 5, Funds Consolidation Act;
(ii) Title 51, Chapter 7, State Money Management Act;
(iii) Title 63A, Utah Administrative Services Code;
(iv) Title 63J, Chapter 1, Budgetary Procedures Act; and
(v) Title 67, Chapter 19, Utah State Personnel Management Act.
(b) The board shall adopt policies parallel to and consistent with:
(i) Title 51, Chapter 5, Funds Consolidation Act;
(ii) Title 51, Chapter 7, State Money Management Act;
(iii) Title 63A, Utah Administrative Services Code; and
(iv) Title 63J, Chapter 1, Budgetary Procedures Act.
(c) The corporation shall comply with:
(i) Title 52, Chapter 4, Open and Public Meetings Act;
(ii) Title 63G, Chapter 2, Government Records Access and Management Act;
(iii) the provisions of Title 63A, Chapter 1, Part 2, Utah Public Finance Website;
(iv) Title 63G, Chapter 6a, Utah Procurement Code, except for a procurement for:
(A) entertainment provided at the state fair park;
(B) judges for competitive exhibits; or
(C) sponsorship of an event at the state fair park; and
(v) the legislative approval requirements for new facilities established in Section
63A-5b-404
.
(8) (a) Before the corporation executes a lease described in Subsection (6)(g) with a
term of 10 or more years, the corporation shall:
(i) submit the proposed lease to the State Building Board for the State Building Board's
approval or rejection; and
(ii) if the State Building Board approves the proposed lease, submit the proposed lease
to the Executive Appropriations Committee for the Executive Appropriation Committee's
review and recommendation in accordance with Subsection (8)(b).
(b) The Executive Appropriations Committee shall review a proposed lease submitted
in accordance with Subsection (8)(a) and recommend to the corporation that the corporation:
(i) execute the proposed sublease; or
(ii) reject the proposed sublease.