Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 151 Second Substitute (2022GS)

Sponsor

Rep. Schultz, M.

Final action

Governor Signed 3/24/2022

Outcome

Became law — signed by Gov. Spencer J. Cox

Summary

What it does

• This bill:
• defines terms;
• prohibits a public entity from making, or entering into an agreement to make, certain incentive payments related to retail facilities after a specified date, with specified exceptions;
• requires a public entity that makes certain payments related to retail facilities during a fiscal year to submit a report or notification to the Governor's Office of Economic Opportunity (office);
• requires the office to review a public entity's report to determine whether certain incentive payments comply with this bill;
• allows a public entity to appeal a determination by the office that certain incentive payments had been made in violation of this bill;
• allows the office to notify the state auditor after a specified date if a public entity fails to submit a report or fails to make efforts to recoup misused funds within a certain time;
• allows the state auditor to initiate an audit or investigation if the state auditor receives notice from the office regarding a public entity; and
• makes technical and conforming changes.

Every vote on this bill

Bill text

RETAIL FACILITY INCENTIVE PAYMENTS AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Mike Schultz
Senate Sponsor: 
Evan J. Vickers
LONG TITLE
General Description:
This bill amends provisions relating to incentive payments for retail facilities.
Highlighted Provisions:
This bill:
▸ defines terms;
▸ prohibits a public entity from making, or entering into an agreement to make,
certain incentive payments related to retail facilities after a specified date, with
specified exceptions;
▸ requires a public entity that makes certain payments related to retail facilities during
a fiscal year to submit a report or notification to the Governor's Office of Economic
Opportunity (office);
▸ requires the office to review a public entity's report to determine whether certain
incentive payments comply with this bill;
▸ allows a public entity to appeal a determination by the office that certain incentive
payments had been made in violation of this bill;
▸ allows the office to notify the state auditor after a specified date if a public entity
fails to submit a report or fails to make efforts to recoup misused funds within a
certain time;
▸ allows the state auditor to initiate an audit or investigation if the state auditor
receives notice from the office regarding a public entity; and
▸ makes technical and conforming changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
10-8-2
, as last amended by Laws of Utah 2021, Chapters 84, 345, and 355
11-41-102
, as last amended by Laws of Utah 2021, Chapter 367
11-41-103
, as enacted by Laws of Utah 2004, Chapter 283
17-27a-102
, as last amended by Laws of Utah 2021, Chapter 432
17C-1-407
, as last amended by Laws of Utah 2019, Chapters 376 and 480
17C-1-409
, as last amended by Laws of Utah 2021, Chapter 214
63G-4-102
, as last amended by Laws of Utah 2021, Chapter 291
63N-1a-301
, as renumbered and amended by Laws of Utah 2021, Chapter 282
67-3-1
, as last amended by Laws of Utah 2021, Chapters 84 and 155
ENACTS:
11-41-104
, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
10-8-2
 is amended to read:
10-8-2.
Appropriations -- Acquisition and disposal of property -- Municipal
authority -- Corporate purpose -- Procedure -- Notice of intent to acquire real property.
(1) (a) [
A
] 
Subject to Section 
11-41-103
, a
 municipal legislative body may:
(i) appropriate money for corporate purposes only;
(ii) provide for payment of debts and expenses of the corporation;
(iii) subject to Subsections (4) and (5), purchase, receive, hold, sell, lease, convey, and
dispose of real and personal property for the benefit of the municipality, whether the property is
within or without the municipality's corporate boundaries, if the action is in the public interest
and complies with other law;
(iv) improve, protect, and do any other thing in relation to this property that an
individual could do; and
(v) subject to Subsection (2) and after first holding a public hearing, authorize
municipal services or other nonmonetary assistance to be provided to or waive fees required to
be paid by a nonprofit entity, whether or not the municipality receives consideration in return.
(b) A municipality may:
(i) furnish all necessary local public services within the municipality;
(ii) purchase, hire, construct, own, maintain and operate, or lease public utilities
located and operating within and operated by the municipality; and
(iii) subject to Subsection (1)(c), acquire by eminent domain, or otherwise, property
located inside or outside the corporate limits of the municipality and necessary for any of the
purposes stated in Subsections (1)(b)(i) and (ii), subject to restrictions imposed by Title 78B,
Chapter 6, Part 5, Eminent Domain, and general law for the protection of other communities.
(c) Each municipality that intends to acquire property by eminent domain under
Subsection (1)(b) shall comply with the requirements of Section 
78B-6-505
.
(d) Subsection (1)(b) may not be construed to diminish any other authority a
municipality may claim to have under the law to acquire by eminent domain property located
inside or outside the municipality.
(2) (a) Services or assistance provided pursuant to Subsection (1)(a)(v) is not subject to
the provisions of Subsection (3).
(b) The total amount of services or other nonmonetary assistance provided or fees
waived under Subsection (1)(a)(v) in any given fiscal year may not exceed 1% of the
municipality's budget for that fiscal year.
(3) It is considered a corporate purpose to appropriate money for any purpose that, in
the judgment of the municipal legislative body, provides for the safety, health, prosperity,
moral well-being, peace, order, comfort, or convenience of the inhabitants of the municipality
subject to this Subsection (3).
(a) The net value received for any money appropriated shall be measured on a
project-by-project basis over the life of the project.
(b) (i) A municipal legislative body shall establish the criteria for a determination
under this Subsection (3).
(ii) A municipal legislative body's determination of value received is presumed valid
unless a person can show that the determination was arbitrary, capricious, or illegal.
(c) The municipality may consider intangible benefits received by the municipality in
determining net value received.
(d) (i) Before the municipal legislative body makes any decision to appropriate any
funds for a corporate purpose under this section, the municipal legislative body shall hold a
public hearing.
(ii) At least 14 days before the date of the hearing, the municipal legislative body shall
publish a notice of the hearing described in Subsection (3)(d)(i) by posting notice:
(A) in at least three conspicuous places within the municipality; and
(B) on the Utah Public Notice Website created in Section 
63A-16-601
.
(e) (i) Before a municipality provides notice as described in Subsection (3)(d)(ii), the
municipality shall perform a study that analyzes and demonstrates the purpose for an
appropriation described in this Subsection (3) in accordance with Subsection (3)(e)(iii).
(ii) A municipality shall make the study described in Subsection (3)(e)(i) available at
the municipality for review by interested parties at least 14 days immediately before the public
hearing described in Subsection (3)(d)(i).
(iii) A municipality shall consider the following factors when conducting the study
described in Subsection (3)(e)(i):
(A) what identified benefit the municipality will receive in return for any money or
resources appropriated;
(B) the municipality's purpose for the appropriation, including an analysis of the way
the appropriation will be used to enhance the safety, health, prosperity, moral well-being,
peace, order, comfort, or convenience of the inhabitants of the municipality; and
(C) whether the appropriation is necessary and appropriate to accomplish the
reasonable goals and objectives of the municipality in the area of economic development, job
creation, affordable housing, elimination of a development impediment, job preservation, the
preservation of historic structures and property, and any other public purpose.
(f) (i) An appeal may be taken from a final decision of the municipal legislative body,
to make an appropriation.
(ii) A person shall file an appeal as described in Subsection (3)(f)(i) with the district
court within 30 days after the day on which the municipal legislative body makes a decision.
(iii) Any appeal shall be based on the record of the proceedings before the legislative
body.
(iv) A decision of the municipal legislative body shall be presumed to be valid unless
the appealing party shows that the decision was arbitrary, capricious, or illegal.
(g) The provisions of this Subsection (3) apply only to those appropriations made after
May 6, 2002.
(h) This section applies only to appropriations not otherwise approved pursuant to Title
10, Chapter 5, Uniform Fiscal Procedures Act for Utah Towns, or Title 10, Chapter 6, Uniform
Fiscal Procedures Act for Utah Cities.
(4) (a) Before a municipality may dispose of a significant parcel of real property, the
municipality shall:
(i) provide reasonable notice of the proposed disposition at least 14 days before the
opportunity for public comment under Subsection (4)(a)(ii); and
(ii) allow an opportunity for public comment on the proposed disposition.
(b) Each municipality shall, by ordinance, define what constitutes:
(i) a significant parcel of real property for purposes of Subsection (4)(a); and
(ii) reasonable notice for purposes of Subsection (4)(a)(i).
(5) (a) Except as provided in Subsection (5)(d), each municipality intending to acquire
real property for the purpose of expanding the municipality's infrastructure or other facilities
used for providing services that the municipality offers or intends to offer shall provide written
notice, as provided in this Subsection (5), of its intent to acquire the property if:
(i) the property is located:
(A) outside the boundaries of the municipality; and
(B) in a county of the first or second class; and
(ii) the intended use of the property is contrary to:
(A) the anticipated use of the property under the general plan of the county in whose
unincorporated area or the municipality in whose boundaries the property is located; or
(B) the property's current zoning designation.
(b) Each notice under Subsection (5)(a) shall:
(i) indicate that the municipality intends to acquire real property;
(ii) identify the real property; and
(iii) be sent to:
(A) each county in whose unincorporated area and each municipality in whose
boundaries the property is located; and
(B) each affected entity.
(c) A notice under this Subsection (5) is a protected record as provided in Subsection
63G-2-305
(8).
(d) (i) The notice requirement of Subsection (5)(a) does not apply if the municipality
previously provided notice under Section 
10-9a-203
 identifying the general location within the
municipality or unincorporated part of the county where the property to be acquired is located.
(ii) If a municipality is not required to comply with the notice requirement of
Subsection (5)(a) because of application of Subsection (5)(d)(i), the municipality shall provide
the notice specified in Subsection (5)(a) as soon as practicable after its acquisition of the real
property.
Section 2. Section 
11-41-102
 is amended to read:
CHAPTER 41. PROHIBITION ON RETAIL FACILITY INCENTIVE
PAYMENTS ACT
11-41-102.
Definitions.
As used in this chapter:
(1) "Agreement" means an oral or written agreement between a[
:
] 
public entity and a
person.
[
(a) (i) county; or
]
[
(ii) municipality; and
]
[
(b) person.
]
[
(2) "Municipality" means a:
]
[
(a) city;
]
[
(b) town; or
]
[
(c) metro township.
]
[
(3) "Payment" includes:
]
[
(a) a payment;
]
[
(b) a rebate;
]
[
(c) a refund; or
]
[
(d) an amount similar to Subsections (3)(a) through (c).
]
[
(4) "Regional retail business" means a:
]
[
(a) retail business that occupies a floor area of more than 80,000 square feet;
]
[
(b) dealer as defined in Section 
41-1a-102
;
]
[
(c) retail shopping facility that has at least two anchor tenants if the total number of
anchor tenants in the shopping facility occupy a total floor area of more than 150,000 square
feet; or
]
[
(d) grocery store that occupies a floor area of more than 30,000 square feet.
]
[
(5) (a) "Sales and use tax" means a tax:
]
[
(i) imposed on transactions within a:
]
[
(A) county; or
]
[
(B) municipality; and
]
[
(ii) except as provided in Subsection (5)(b), authorized under Title 59, Chapter 12,
Sales and Use Tax Act.
]
[
(b) "Sales and use tax" does not include a tax authorized under:
]
[
(i) Subsection 
59-12-103
(2)(a)(i);
]
[
(ii) Subsection 
59-12-103
(2)(b)(i);
]
[
(iii) Subsection 
59-12-103
(2)(c)(i);
]
[
(iv) Subsection 
59-12-103
(2)(d);
]
[
(v) Subsection 
59-12-103
(2)(e)(i)(A);
]
[
(vi) Section 
59-12-301
;
]
[
(vii) Section 
59-12-352
;
]
[
(viii) Section 
59-12-353
;
]
[
(ix) Section 
59-12-603
; or
]
[
(x) Section 
59-12-1201
.
]
[
(6) (a) "Sales and use tax incentive payment" means a payment of revenues:
]
[
(i) to a person;
]
[
(ii) by a:
]
[
(A) county; or
]
[
(B) municipality;
]
[
(iii) to induce the person to locate or relocate a regional retail business within the:
]
[
(A) county; or
]
[
(B) municipality; and
]
[
(iv) that are derived from a sales and use tax.
]
[
(b) "Sales and use tax incentive payment" does not include funding for public
infrastructure.
]
(2) "Business entity" means a sole proprietorship, partnership, limited partnership,
limited liability company, corporation, or other entity or association used to carry on a business
for profit.
(3) "Determination of violation" means a determination by the Governor's Office of
Economic Opportunity of substantial likelihood that a retail facility incentive payment has been
made in violation of Section 
11-41-103
, in accordance with Section 
11-41-104
.
(4) "Environmental mitigation" means an action or activity intended to remedy known
negative impacts to the environment.
(5) "Executive director" means the executive director of the Governor's Office of
Economic Opportunity.
(6) "General plan" means the same as that term is defined in Section 
23-21-.5
.
(7) "Mixed-use development" means development with mixed land uses, including
housing.
(8) "Moderate income housing plan" means the moderate income housing plan element
of a general plan.
(9) "Office" means the Governor's Office of Economic Opportunity.
(10) "Political subdivision" means any county, city, town, metro township, school
district, local district, special service district, community reinvestment agency, or entity created
by an interlocal agreement adopted under Title 11, Chapter 13, Interlocal Cooperation Act.
(11) "Public entity" means:
(a) a political subdivision;
(b) a state agency as defined in Section 
63J-1-220
;
(c) a higher education institution as defined in Section 
53B-1-201
;
(d) the Military Installation Development Authority created in Section 
63H-1-201
;
(e) the Utah Inland Port Authority created in Section 
11-58-201
; or
(f) the Point of the Mountain State Land Authority created in Section 
11-59-201
.
(12) "Public funds" means any money received by a public entity that is derived from:
(a) a sales and use tax authorized under Title 59, Chapter 12, Sales and Use Tax Act;
or
(b) a property tax levy.
(13) "Public infrastructure" means:
(a) a public facility as defined in Section 
11-36a-102
; or
(b) public infrastructure included as part of an infrastructure master plan related to a
general plan.
(14) "Retail facility" means any facility operated by a business entity for the primary
purpose of making retail transactions.
(15) (a) "Retail facility incentive payment" means a payment of public funds:
(i) to a person by a public entity;
(ii) for the development, construction, renovation, or operation of a retail facility
within an area of the state; and
(iii) in the form of:
(A) a payment;
(B) a rebate;
(C) a refund;
(D) a subsidy; or
(E) any other similar incentive, award, or offset.
(b) "Retail facility incentive payment" does not include a payment of public funds for:
(i) the development, construction, renovation, or operation of:
(A) public infrastructure; or
(B) a structured parking facility;
(ii) the demolition of an existing facility;
(iii) assistance under a state or local:
(A) main street program; or
(B) historic preservation program;
(iv) environmental mitigation or sanitation, if determined by a state or federal agency
under applicable state or federal law;
(v) assistance under a water conservation program or energy efficiency program, if any
business entity located within the public entity's boundaries or subject to the public entity's
jurisdiction is eligible to participate in the program;
(vi) emergency aid or assistance, if any business entity located within the public entity's
boundaries or subject to the public entity's jurisdiction is eligible to receive the emergency aid
or assistance; or
(vii) assistance under a public safety or security program, if any business entity located
within the public entity's boundaries or subject to the public entity's jurisdiction is eligible to
participate in the program.
(16) "Retail transaction" means any transaction subject to a sales and use tax under
Title 59, Chapter 12, Sales and Use Tax Act.
(17) (a) "Small business" means a business entity that:
(i) has fewer than 30 full-time equivalent employees; and
(ii) maintains the business entity's principal office in the state.
(b) "Small business" does not include:
(i) a franchisee, as defined in 16 C.F.R. Sec. 436.1;
(ii) a dealer, as defined in Section 
41-1a-102
; or
(iii) a subsidiary or affiliate of another business entity that is not a small business.
Section 3. Section 
11-41-103
 is amended to read:
11-41-103.
Prohibition on retail facility incentive payments -- Exceptions.
[
A county or municipality may not:
]
(1) Except as provided in Subsection (2), a public entity may not:
[
(1)
] 
(a)
 make a [
sales and use tax
] 
retail facility
 incentive payment under an agreement
that is initiated or
 entered into on or after July 1, [
] 
; or
[
(2)
] 
(b) initiate or
 enter into an agreement on or after July 1, [
] 
2022,
 to make a
[
sales and use tax
] 
retail facility
 incentive payment.
(2) Notwithstanding Subsection (1), a public entity may make a retail facility incentive
payment for:
(a) a retail facility located entirely within a census tract in which more than 51% of
residents have a household income at or below 70% of the county area median income;
(b) a retail facility included as part of a mixed-use development in which:
(i) the development includes at least one housing unit for every 1,250 square feet of
retail space within the development; and
(ii) at least 10% of the new or proposed housing units within the development qualify
as moderate income housing, in accordance with the moderate income housing plan of the
municipality or county in which the development is located;
(c) a retail facility included as part of a development in which:
(i) the retail facility has a gross sales floor area of no more than 20,000 square feet; and
(ii) no other retail facility with a gross sales floor area of more than 20,000 square feet
is located within the same development;
(d) a retail facility located within a county of the fourth, fifth, or sixth class;
(e) a retail facility for a small business;
(f) a retail facility for a Utah-based nonprofit arts or cultural organization; or
(g) a retail facility for a ski resort that:
(i) has been in operation for at least 40 years; and
(ii) provides at least 1,000 acres for skiing.
(3) A person who receives public funds for a mixed-use development in accordance
with Subsection (2)(b) may not use the public funds for the development, construction,
renovation, or operation of housing units within the mixed-use development unless the housing
units qualify as moderate income housing in accordance with the moderate income housing
plan of the municipality or county in which the development is located.
(4) (a) For each fiscal year that a public entity makes a retail facility incentive payment
described in Subsections (2)(a) through (c), the public entity shall submit a written report to the
office in accordance with Subsection 
11-41-104
(1).
(b) For each fiscal year that a public entity makes a retail facility incentive payment
described in Subsections (2)(d) through (g), the public entity shall submit a notification to the
office in accordance with Subsection 
11-41-104
(2).
Section 4. Section 
11-41-104
 is enacted to read:
 11-41-104.
Reporting and notification requirements -- Notice to state auditor.
(1) (a) For a fiscal year beginning on or after July 1, 2022, a public entity that makes a
retail facility incentive payment described in Subsections 
11-41-103
(2)(a) through (c) shall
submit a written report to the office on or before June 30 of the fiscal year in which the retail
facility incentive payment is made.
(b) The report under Subsection (1)(a) shall:
(i) provide a description of each retail facility incentive payment under Subsections
11-41-103
(2)(a) through (c) that the public entity made during the fiscal year, including:
(A) the type of retail facility incentive payment;
(B) the date on which the retail facility incentive payment was made; and
(C) identification of the recipient of the retail facility incentive payment;
(ii) include any other information requested by the office; and
(iii) be in a form prescribed by the office.
(2) (a) For a fiscal year beginning on or after July 1, 2022, a public entity that makes a
retail facility incentive payment described in Subsections 
11-41-103
(2)(d) through (g) shall
submit a notification to the office on or before June 30 of the fiscal year in which the retail
facility incentive payment is made.
(b) The notification under Subsection (2)(a) shall:
(i) list each retail facility incentive payment under Subsections 
11-41-103
(2)(d)
through (g) that the public entity made during the fiscal year, including the date on which the
retail facility incentive payment was made;
(ii) include any other information requested by the office; and
(iii) be in a form prescribed by the office.
(3) Upon the receipt of a report from a public entity under Subsection (1), the office
shall review the report to determine whether each retail facility incentive payment described in
the report is in compliance with Section 
11-41-103
.
(4) After reviewing a public entity's report under Subsection (3), the office shall send a
written notice to the public entity if the office determines there is a substantial likelihood that
the public entity made a retail facility incentive payment in violation of Section 
11-41-103
.
(5) The notice under Subsection (4) shall include:
(a) a statement that describes in reasonable detail how the office made a determination
of violation;
(b) an explanation of the public entity's right to appeal the determination of violation in
accordance with Subsection (6); and
(c) a statement that the office may send notice of the determination of violation to the
state auditor in accordance with Subsection (7) if:
(i) (A) the public entity does not appeal the determination of violation in accordance
with Subsection (6); and
(B) the office determines that the public entity has failed to make efforts to recover or
recoup the amount of public funds lost to the state as a result of the violation within 90 days
after the day on which the notice is sent; or
(ii) (A) the determination of violation is upheld on appeal in accordance with
Subsection (6); and
(B) the office determines that the public entity has failed to make efforts to recover or
recoup the amount of public funds lost to the state as a result of the violation within 90 days
after the day on which the determination of violation is upheld.
(6) (a) The public entity may appeal the determination of violation by sending a written
notice to the office within 30 days after the day on which the notice described in Subsection (5)
is sent.
(b) The notice under Subsection (6)(a) shall include a statement that describes in
reasonable detail each objection to the determination of violation.
(c) The executive director shall:
(i) within 90 days after the day on which the office receives notice under Subsection
(6)(a), hold a meeting with representatives of the public entity at which the public entity's
objections to the determination of violation are discussed; and
(ii) within 30 days after the day on which the meeting under Subsection (6)(c)(i) is
held:
(A) issue a written decision that upholds or rescinds the determination of violation; and
(B) send a copy of the written decision to the public entity.
(d) An appeal under this Subsection (6) is not subject to Title 63G, Chapter 4,
Administrative Procedures Act.
(7) (a) Beginning July 1, 2024, the office may send a written notice to the state auditor
if the office determines that:
(i) Subsection (5)(c)(i) or (ii) applies to a public entity; or
(ii) a public entity failed to submit the report described in Subsection (1).
(b) The notice under Subsection (7)(a) shall include:
(i) a description of the office's grounds for sending notice;
(ii) a copy of the report submitted to the office under Subsection (1), if applicable; and
(iii) any other information required by the state auditor for purposes of initiating an
audit or investigation in accordance with Section 
67-3-1
.
(8) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
office may make rules to implement this section.
Section 5. Section 
17-27a-102
 is amended to read:
17-27a-102.
Purposes -- General land use authority -- Limitations.
(1) (a) The purposes of this chapter are to:
(i) provide for the health, safety, and welfare;
(ii) promote the prosperity;
(iii) improve the morals, peace, good order, comfort, convenience, and aesthetics of
each county and each county's present and future inhabitants and businesses;
(iv) protect the tax base;
(v) secure economy in governmental expenditures;
(vi) foster the state's agricultural and other industries;
(vii) protect both urban and nonurban development;
(viii) protect and ensure access to sunlight for solar energy devices;
(ix) provide fundamental fairness in land use regulation;
(x) facilitate orderly growth and allow growth in a variety of housing types; and
(xi) protect property values.
(b) [
Except as provided in
] 
Subject to
 Subsection (4) 
and Section 
11-41-103
, to
accomplish the purposes of this chapter, a county may enact all ordinances, resolutions, and
rules and may enter into other forms of land use controls and development agreements that the
county considers necessary or appropriate for the use and development of land within the
unincorporated area of the county or a designated mountainous planning district, including
ordinances, resolutions, rules, restrictive covenants, easements, and development agreements
governing:
(i) uses;
(ii) density;
(iii) open spaces;
(iv) structures;
(v) buildings;
(vi) energy-efficiency;
(vii) light and air;
(viii) air quality;
(ix) transportation and public or alternative transportation;
(x) infrastructure;
(xi) street and building orientation and width requirements;
(xii) public facilities;
(xiii) fundamental fairness in land use regulation; and
(xiv) considerations of surrounding land uses to balance the foregoing purposes with a
landowner's private property interests and associated statutory and constitutional protections.
(2) Each county shall comply with the mandatory provisions of this part before any
agreement or contract to provide goods, services, or municipal-type services to any storage
facility or transfer facility for high-level nuclear waste, or greater than class C radioactive
waste, may be executed or implemented.
(3) (a) Any ordinance, resolution, or rule enacted by a county pursuant to its authority
under this chapter shall comply with the state's exclusive jurisdiction to regulate oil and gas
activity, as described in Section 
40-6-2.5
.
(b) A county may enact an ordinance, resolution, or rule that regulates surface activity
incident to an oil and gas activity if the county demonstrates that the regulation:
(i) is necessary for the purposes of this chapter;
(ii) does not effectively or unduly limit, ban, or prohibit an oil and gas activity; and
(iii) does not interfere with the state's exclusive jurisdiction to regulate oil and gas
activity, as described in Section 
40-6-2.5
.
(4) (a) This Subsection (4) applies to development agreements entered into on or after
May 5, 2021.
(b) A provision in a county development agreement is unenforceable if the provision
requires an individual or an entity, as a condition for issuing building permits or otherwise
regulating development activities within an unincorporated area of the county, to initiate a
process for a municipality to annex the unincorporated area in accordance with Title 10,
Chapter 2, Part 4, Annexation.
(c) Subsection (4)(b) does not affect or impair the enforceability of any other provision
in the development agreement.
Section 6. Section 
17C-1-407
 is amended to read:
17C-1-407.
Limitations on tax increment.
(1) (a) If the development of retail sales of goods is the primary objective of an urban
renewal project area, tax increment from the urban renewal project area may not be paid to or
used by an agency unless the agency makes a development impediment determination under 
Chapter 2, Part 3, Development Impediment Determination in Urban Renewal Project Areas.
(b) [
Development
] 
Except as provided in Section 
11-41-103
, development
 of retail
sales of goods does not disqualify an agency from receiving tax increment.
(c) After July 1, 2005, an agency may not receive or use tax increment generated from
the value of property within an economic development project area that is attributable to the
development of retail sales of goods, unless the tax increment was previously pledged to pay
for bonds or other contractual obligations of the agency.
(2) (a) For the purpose of this Subsection (2):
(i) "Final tax rate" means the rate used to determine the amount of taxes a taxing entity
levies as described in the notice to a taxpayer under Subsection 
59-2-1317
(2).
(ii) "Increased tax revenue" means tax revenue attributable to a tax rate increase.
(iii) "Tax rate increase" means the amount calculated by subtracting a taxing entity's
certified rate, as defined in Section 
59-2-924
, from the taxing entity's final tax rate.
(b) Except as provided in Subsection (2)(c), for a year in which a taxing entity imposes
a final tax rate higher than the certified tax rate, a county shall not pay an agency any portion of
a taxing entity's increased tax revenue.
(c) Notwithstanding Subsection (2)(b), a county may pay all or a portion of a taxing
entity's increased tax revenue to an agency if, at the time of the project area budget approval,
the taxing entity committee or each taxing entity that is a party to an agreement under Section
17C-4-201
 or 
17C-5-204
 consents to pay the agency the increased tax revenue.
(d) If the taxing entity committee or each tax entity that is a party to an agreement
under Section 
17C-4-201
 or 
17C-5-204
 does not consent to payment of the increased tax
revenue to the agency under Subsection (2)(c), the county shall distribute to the taxing entity
the increased tax revenue in the same manner as other property tax revenue.
(e) Notwithstanding any other provision of this section, if, before tax year 2013,
increased tax revenue is paid to an agency without the consent of the taxing entity committee or
each taxing entity that is a party to an agreement under Section 
17C-4-201
 or 
17C-5-204
, and
notwithstanding the law at the time that the tax revenue was collected or increased:
(i) the State Tax Commission, the county as the collector of the taxes, a taxing entity,
or any other person or entity may not recover, directly or indirectly, the increased tax revenue
from the agency by adjustment of a tax rate used to calculate tax increment or otherwise;
(ii) the county is not liable to a taxing entity or any other person or entity for the
increased tax revenue that was paid to the agency; and
(iii) tax increment, including the increased tax revenue, shall continue to be paid to the
agency subject to the same number of tax years, percentage of tax increment, and cumulative
dollar amount of tax increment as approved in the project area budget and previously paid to
the agency.
(f) An adjustment may not be made to incremental value under Section 
59-2-924
 for
increased tax revenue not paid to an agency under this section.
(3) Except as the taxing entity committee otherwise agrees, an agency may not receive
tax increment under an urban renewal or economic development project area budget adopted
on or after March 30, 2009:
(a) that exceeds the percentage of tax increment or cumulative dollar amount of tax
increment specified in the project area budget; or
(b) for more tax years than specified in the project area budget.
Section 7. Section 
17C-1-409
 is amended to read:
17C-1-409.
Allowable uses of agency funds.
(1) (a) An agency may use agency funds:
(i) for any purpose authorized under this title;
(ii) for administrative, overhead, legal, or other operating expenses of the agency,
including consultant fees and expenses under Subsection 
17C-2-102
(1)(b)(ii)(B) or funding for
a business resource center;
(iii) 
subject to Section 
11-41-103
,
 to pay for, including financing or refinancing, all or
part of:
(A) project area development in a project area, including environmental remediation
activities occurring before or after adoption of the project area plan;
(B) housing-related expenditures, projects, or programs as described in Section
17C-1-411
 or 
17C-1-412
;
(C) an incentive or other consideration paid to a participant under a participation
agreement;
(D) subject to Subsections (1)(c) and (4), the value of the land for and the cost of the
installation and construction of any publicly owned building, facility, structure, landscaping, or
other improvement within the project area from which the project area funds are collected; or
(E) the cost of the installation of publicly owned infrastructure and improvements
outside the project area from which the project area funds are collected if the board and the
community legislative body determine by resolution that the publicly owned infrastructure and
improvements benefit the project area;
(iv) in an urban renewal project area that includes some or all of an inactive industrial
site and subject to Subsection (1)(e), to reimburse the Department of Transportation created
under Section 
72-1-201
, or a public transit district created under Title 17B, Chapter 2a, Part 8,
Public Transit District Act, for the cost of:
(A) construction of a public road, bridge, or overpass;
(B) relocation of a railroad track within the urban renewal project area; or
(C) relocation of a railroad facility within the urban renewal project area;
(v) subject to Subsection (5), to transfer funds to a community that created the agency;
or
(vi) subject to Subsection (1)(f), for agency-wide project development under Part 10,
Agency Taxing Authority.
(b) The determination of the board and the community legislative body under
Subsection (1)(a)(iii)(E) regarding benefit to the project area shall be final and conclusive.
(c) An agency may not use project area funds received from a taxing entity for the
purposes stated in Subsection (1)(a)(iii)(D) under an urban renewal project area plan, an
economic development project area plan, or a community reinvestment project area plan
without the community legislative body's consent.
(d) (i) Subject to Subsection (1)(d)(ii), an agency may loan project area funds from a
project area fund to another project area fund if:
(A) the board approves; and
(B) the community legislative body approves.
(ii) An agency may not loan project area funds under Subsection (1)(d)(i) unless the
projections for agency funds are sufficient to repay the loan amount.
(iii) A loan described in Subsection (1)(d) is not subject to Title 10, Chapter 5,
Uniform Fiscal Procedures Act for Utah Towns, Title 10, Chapter 6, Uniform Fiscal
Procedures Act for Utah Cities, Title 17, Chapter 36, Uniform Fiscal Procedures Act for
Counties, or Title 17B, Chapter 1, Part 6, Fiscal Procedures for Local Districts.
(e) Before an agency may pay any tax increment or sales tax revenue under Subsection
(1)(a)(iv), the agency shall enter into an interlocal agreement defining the terms of the
reimbursement with:
(i) the Department of Transportation; or
(ii) a public transit district.
(f) Before an agency may use project area funds for agency-wide project development,
as defined in Section 
17C-1-1001
, the agency shall obtain the consent of the taxing entity
committee or each taxing entity party to an interlocal agreement with the agency.
(2) (a) Sales and use tax revenue that an agency receives from a taxing entity is not
subject to the prohibition or limitations of Title 11, Chapter 41, Prohibition on Sales and Use
Tax Incentive Payments Act.
(b) An agency may use sales and use tax revenue that the agency receives under an
interlocal agreement under Section 
17C-4-201
 or 
17C-5-204
 for the uses authorized in the
interlocal agreement.
(3) (a) An agency may contract with the community that created the agency or another
public entity to use agency funds to reimburse the cost of items authorized by this title to be
paid by the agency that are paid by the community or other public entity.
(b) If land is acquired or the cost of an improvement is paid by another public entity
and the land or improvement is leased to the community, an agency may contract with and
make reimbursement from agency funds to the community.
(4) Notwithstanding any other provision of this title, an agency may not use project
area funds, project area incremental revenue as defined in Section 
17C-1-1001
, or property tax
revenue as defined in Section 
17C-1-1001
, to construct a local government building unless the
taxing entity committee or each taxing entity party to an interlocal agreement with the agency
consents.
(5) For the purpose of offsetting the community's annual local contribution to the
Homeless Shelter Cities Mitigation Restricted Account, the total amount an agency transfers in
a calendar year to a community under Subsections (1)(a)(v), 
17C-1-411
(1)(d), and
17C-1-412
(1)(a)(x) may not exceed the community's annual local contribution as defined in
Section 
35A-8-606
. 
Section 8. Section 
63G-4-102
 is amended to read:
63G-4-102.
Scope and applicability of chapter.
(1) Except as set forth in Subsection (2), and except as otherwise provided by a statute
superseding provisions of this chapter by explicit reference to this chapter, the provisions of
this chapter apply to every agency of the state and govern:
(a) state agency action that determines the legal rights, duties, privileges, immunities,
or other legal interests of an identifiable person, including agency action to grant, deny, revoke,
suspend, modify, annul, withdraw, or amend an authority, right, or license; and
(b) judicial review of the action.
(2) This chapter does not govern:
(a) the procedure for making agency rules, or judicial review of the procedure or rules;
(b) the issuance of a notice of a deficiency in the payment of a tax, the decision to
waive a penalty or interest on taxes, the imposition of and penalty or interest on taxes, or the
issuance of a tax assessment, except that this chapter governs an agency action commenced by
a taxpayer or by another person authorized by law to contest the validity or correctness of the
action;
(c) state agency action relating to extradition, to the granting of a pardon or parole, a
commutation or termination of a sentence, or to the rescission, termination, or revocation of
parole or probation, to the discipline of, resolution of a grievance of, supervision of,
confinement of, or the treatment of an inmate or resident of a correctional facility, the Utah
State Hospital, the Utah State Developmental Center, or a person in the custody or jurisdiction
of the Division of Substance Abuse and Mental Health, or a person on probation or parole, or
judicial review of the action;
(d) state agency action to evaluate, discipline, employ, transfer, reassign, or promote a
student or teacher in a school or educational institution, or judicial review of the action;
(e) an application for employment and internal personnel action within an agency
concerning its own employees, or judicial review of the action;
(f) the issuance of a citation or assessment under Title 34A, Chapter 6, Utah
Occupational Safety and Health Act, and Title 58, Occupations and Professions, except that
this chapter governs an agency action commenced by the employer, licensee, or other person
authorized by law to contest the validity or correctness of the citation or assessment;
(g) state agency action relating to management of state funds, the management and
disposal of school and institutional trust land assets, and contracts for the purchase or sale of
products, real property, supplies, goods, or services by or for the state, or by or for an agency of
the state, except as provided in those contracts, or judicial review of the action;
(h) state agency action under Title 7, Chapter 1, Part 3, Powers and Duties of
Commissioner of Financial Institutions, Title 7, Chapter 2, Possession of Depository Institution
by Commissioner, Title 7, Chapter 19, Acquisition of Failing Depository Institutions or
Holding Companies, and [
Title 63G,
] Chapter 7, Governmental Immunity Act of Utah, or
judicial review of the action;
(i) the initial determination of a person's eligibility for unemployment benefits, the
initial determination of a person's eligibility for benefits under Title 34A, Chapter 2, Workers'
Compensation Act, and Title 34A, Chapter 3, Utah Occupational Disease Act, or the initial
determination of a person's unemployment tax liability;
(j) state agency action relating to the distribution or award of a monetary grant to or
between governmental units, or for research, development, or the arts, or judicial review of the
action;
(k) the issuance of a notice of violation or order under Title 26, Chapter 8a, Utah
Emergency Medical Services System Act, Title 19, Chapter 2, Air Conservation Act, Title 19,
Chapter 3, Radiation Control Act, Title 19, Chapter 4, Safe Drinking Water Act, Title 19,
Chapter 5, Water Quality Act, Title 19, Chapter 6, Part 1, Solid and Hazardous Waste Act,
Title 19, Chapter 6, Part 4, Underground Storage Tank Act, or Title 19, Chapter 6, Part 7, Used
Oil Management Act, or Title 19, Chapter 6, Part 10, Mercury Switch Removal Act, except
that this chapter governs an agency action commenced by a person authorized by law to contest
the validity or correctness of the notice or order;
(l) state agency action, to the extent required by federal statute or regulation, to be
conducted according to federal procedures;
(m) the initial determination of a person's eligibility for government or public
assistance benefits;
(n) state agency action relating to wildlife licenses, permits, tags, and certificates of
registration;
(o) a license for use of state recreational facilities;
(p) state agency action under [
Title 63G,
] Chapter 2, Government Records Access and
Management Act, except as provided in Section 
63G-2-603
;
(q) state agency action relating to the collection of water commissioner fees and
delinquency penalties, or judicial review of the action;
(r) state agency action relating to the installation, maintenance, and repair of headgates,
caps, values, or other water controlling works and weirs, flumes, meters, or other water
measuring devices, or judicial review of the action;
(s) the issuance and enforcement of an initial order under Section 
73-2-25
;
(t) (i) a hearing conducted by the Division of Securities under Section 
61-1-11.1
; and
(ii) an action taken by the Division of Securities under a hearing conducted under
Section 
61-1-11.1
, including a determination regarding the fairness of an issuance or exchange
of securities described in Subsection 
61-1-11.1
(1);
(u) state agency action relating to water well driller licenses, water well drilling
permits, water well driller registration, or water well drilling construction standards, or judicial
review of the action;
(v) the issuance of a determination and order under Title 34A, Chapter 5, Utah
Antidiscrimination Act;
(w) state environmental studies and related decisions by the Department of
Transportation approving state or locally funded projects, or judicial review of the action; [
or
] 
(x) the suspension of operations under Subsection 
32B-1-304
(3)[
.
]
; or
(y) the issuance of a determination of violation by the Governor's Office of Economic
Opportunity under Section 
11-41-104
.
(3) This chapter does not affect a legal remedy otherwise available to:
(a) compel an agency to take action; or
(b) challenge an agency's rule.
(4) This chapter does not preclude an agency, prior to the beginning of an adjudicative
proceeding, or the presiding officer during an adjudicative proceeding from:
(a) requesting or ordering a conference with parties and interested persons to:
(i) encourage settlement;
(ii) clarify the issues;
(iii) simplify the evidence;
(iv) facilitate discovery; or
(v) expedite the proceeding; or
(b) granting a timely motion to dismiss or for summary judgment if the requirements of
Rule 12(b) or Rule 56 of the Utah Rules of Civil Procedure are met by the moving party,
except to the extent that the requirements of those rules are modified by this chapter.
(5) (a) A declaratory proceeding authorized by Section 
63G-4-503
 is not governed by
this chapter, except as explicitly provided in that section.
(b) Judicial review of a declaratory proceeding authorized by Section 
63G-4-503
 is
governed by this chapter.
(6) This chapter does not preclude an agency from enacting a rule affecting or
governing an adjudicative proceeding or from following the rule, if the rule is enacted
according to the procedures outlined in [
Title 63G,
] Chapter 3, Utah Administrative
Rulemaking Act, and if the rule conforms to the requirements of this chapter.
(7) (a) If the attorney general issues a written determination that a provision of this
chapter would result in the denial of funds or services to an agency of the state from the federal
government, the applicability of the provision to that agency shall be suspended to the extent
necessary to prevent the denial.
(b) The attorney general shall report the suspension to the Legislature at its next
session.
(8) Nothing in this chapter may be interpreted to provide an independent basis for
jurisdiction to review final agency action.
(9) Nothing in this chapter may be interpreted to restrict a presiding officer, for good
cause shown, from lengthening or shortening a time period prescribed in this chapter, except
the time period established for judicial review.
(10) Notwithstanding any other provision of this section, this chapter does not apply to
a special adjudicative proceeding, as defined in Section 
19-1-301.5
, except to the extent
expressly provided in Section 
19-1-301.5
.
(11) Subsection (2)(w), regarding action taken based on state environmental studies
and policies of the Department of Transportation, applies to any claim for which a court of
competent jurisdiction has not issued a final unappealable judgment or order before May 14,
2019.
Section 9. Section 
63N-1a-301
 is amended to read:
63N-1a-301.
Creation of office -- Responsibilities.
(1) There is created the Governor's Office of Economic Opportunity.
(2) The office is:
(a) responsible for implementing the statewide economic development strategy
developed by the commission; and
(b) the industrial and business promotion authority of the state.
(3) The office shall:
(a) consistent with the statewide economic development strategy, coordinate and align
into a single effort the activities of the economic opportunity agencies in the field of economic
development;
(b) provide support and direction to economic opportunity agencies in establishing
goals, metrics, and activities that align with the statewide economic development strategy;
(c) administer and coordinate state and federal economic development grant programs;
(d) promote and encourage the economic, commercial, financial, industrial,
agricultural, and civic welfare of the state;
(e) promote and encourage the employment of workers in the state and the purchase of
goods and services produced in the state by local businesses;
(f) act to create, develop, attract, and retain business, industry, and commerce in the
state[
,
]
:
(i)
 in accordance with the statewide economic development plan and commission
directives; 
and
(ii) subject to the restrictions in Section 
11-41-103
;
(g) act to enhance the state's economy;
(h) act to assist strategic industries that are likely to drive future economic growth;
(i) assist communities in the state in developing economic development capacity and
coordination with other communities;
(j) identify areas of education and workforce development in the state that can be
improved to support economic and business development;
(k) consistent with direction from the commission, develop core strategic priorities for
the office, which may include:
(i) enhancing statewide access to entrepreneurship opportunities and small business
support;
(ii) focusing industry recruitment and expansion on strategically chosen clusters of
industries;
(iii) ensuring that in awarding competitive economic development incentives the office
accurately measures the benefits and costs of the incentives; and
(iv) assisting communities with technical support to aid those communities in
improving economic development opportunities;
(l) submit an annual written report as described in Section 
63N-1a-306
; and
(m) perform other duties as provided by the Legislature.
(4) In order to perform its duties under this title, the office may:
(a) enter into a contract or agreement with, or make a grant to, a public or private
entity, including a municipality, if the contract or agreement is not in violation of state statute
or other applicable law;
(b) except as provided in Subsection (4)(c), receive and expend funds from a public or
private source for any lawful purpose that is in the state's best interest; and
(c) solicit and accept a contribution of money, services, or facilities from a public or
private donor, but may not use the contribution for publicizing the exclusive interest of the
donor.
(5) Money received under Subsection (4)(c) shall be deposited [
in
] 
into
 the General
Fund as dedicated credits of the office.
(6) (a) The office shall:
(i) obtain the advice of the GO Utah board before implementing a change to a policy,
priority, or objective under which the office operates; and
(ii) provide periodic updates to the commission regarding the office's efforts under
Subsections (3)(a) and (b).
(b) Subsection (6)(a)(i) does not apply to the routine administration by the office of
money or services related to the assistance, retention, or recruitment of business, industry, or
commerce in the state.
Section 10. Section 
67-3-1
 is amended to read:
67-3-1.
Functions and duties.
(1) (a) The state auditor is the auditor of public accounts and is independent of any
executive or administrative officers of the state.
(b) The state auditor is not limited in the selection of personnel or in the determination
of the reasonable and necessary expenses of the state auditor's office.
(2) The state auditor shall examine and certify annually in respect to each fiscal year,
financial statements showing:
(a) the condition of the state's finances;
(b) the revenues received or accrued;
(c) expenditures paid or accrued;
(d) the amount of unexpended or unencumbered balances of the appropriations to the
agencies, departments, divisions, commissions, and institutions; and
(e) the cash balances of the funds in the custody of the state treasurer.
(3) (a) The state auditor shall:
(i) audit each permanent fund, each special fund, the General Fund, and the accounts of
any department of state government or any independent agency or public corporation as the law
requires, as the auditor determines is necessary, or upon request of the governor or the
Legislature;
(ii) perform the audits in accordance with generally accepted auditing standards and
other auditing procedures as promulgated by recognized authoritative bodies; 
and
(iii) as the auditor determines is necessary, conduct the audits to determine:
(A) honesty and integrity in fiscal affairs;
(B) accuracy and reliability of financial statements;
(C) effectiveness and adequacy of financial controls; and
(D) compliance with the law.
(b) If any state entity receives federal funding, the state auditor shall ensure that the
audit is performed in accordance with federal audit requirements.
(c) (i) The costs of the federal compliance portion of the audit may be paid from an
appropriation to the state auditor from the General Fund.
(ii) If an appropriation is not provided, or if the federal government does not
specifically provide for payment of audit costs, the costs of the federal compliance portions of
the audit shall be allocated on the basis of the percentage that each state entity's federal funding
bears to the total federal funds received by the state.
(iii) The allocation shall be adjusted to reflect any reduced audit time required to audit
funds passed through the state to local governments and to reflect any reduction in audit time
obtained through the use of internal auditors working under the direction of the state auditor.
(4) (a) Except as provided in Subsection (4)(b), the state auditor shall, in addition to
financial audits, and as the auditor determines is necessary, conduct performance and special
purpose audits, examinations, and reviews of any entity that receives public funds, including a
determination of any or all of the following:
(i) the honesty and integrity of all the entity's fiscal affairs;
(ii) whether the entity's administrators have faithfully complied with legislative intent;
(iii) whether the entity's operations have been conducted in an efficient, effective, and
cost-efficient manner;
(iv) whether the entity's programs have been effective in accomplishing the intended
objectives; and
(v) whether the entity's management, control, and information systems are adequate,
effective, and secure.
(b) The auditor may not conduct performance and special purpose audits,
examinations, and reviews of any entity that receives public funds if the entity:
(i) has an elected auditor; and
(ii) has, within the entity's last budget year, had the entity's financial statements or
performance formally reviewed by another outside auditor.
(5) The state auditor:
(a) shall administer any oath or affirmation necessary to the performance of the duties
of the auditor's office; and
(b) may:
(i) subpoena witnesses and documents, whether electronic or otherwise; and
(ii) examine into any matter that the auditor considers necessary.
(6) The state auditor may require all persons who have had the disposition or
management of any property of this state or its political subdivisions to submit statements
regarding the property at the time and in the form that the auditor requires.
(7) The state auditor shall:
(a) except where otherwise provided by law, institute suits in Salt Lake County in
relation to the assessment, collection, and payment of revenues against:
(i) persons who by any means have become entrusted with public money or property
and have failed to pay over or deliver the money or property; and
(ii) all debtors of the state;
(b) collect and pay into the state treasury all fees received by the state auditor;
(c) perform the duties of a member of all boards of which the state auditor is a member
by the constitution or laws of the state, and any other duties that are prescribed by the
constitution and by law;
(d) stop the payment of the salary of any state official or state employee who:
(i) refuses to settle accounts or provide required statements about the custody and
disposition of public funds or other state property;
(ii) refuses, neglects, or ignores the instruction of the state auditor or any controlling
board or department head with respect to the manner of keeping prescribed accounts or funds;
or
(iii) fails to correct any delinquencies, improper procedures, and errors brought to the
official's or employee's attention;
(e) establish accounting systems, methods, and forms for public accounts in all taxing
or fee-assessing units of the state in the interest of uniformity, efficiency, and economy;
(f) superintend the contractual auditing of all state accounts;
(g) subject to Subsection (8)(a), withhold state allocated funds or the disbursement of
property taxes from a state or local taxing or fee-assessing unit, if necessary, to ensure that
officials and employees in those taxing units comply with state laws and procedures in the
budgeting, expenditures, and financial reporting of public funds;
(h) subject to Subsection (9), withhold the disbursement of tax money from any county,
if necessary, to ensure that officials and employees in the county comply with Section
59-2-303.1
; and
(i) withhold state allocated funds or the disbursement of property taxes from a local
government entity or a limited purpose entity, as those terms are defined in Section 
67-1a-15
 if
the state auditor finds the withholding necessary to ensure that the entity registers and
maintains the entity's registration with the lieutenant governor, in accordance with Section
67-1a-15
.
(8) (a) Except as otherwise provided by law, the state auditor may not withhold funds
under Subsection (7)(g) until a state or local taxing or fee-assessing unit has received formal
written notice of noncompliance from the auditor and has been given 60 days to make the
specified corrections.
(b) If, after receiving notice under Subsection (8)(a), a state or independent local
fee-assessing unit that exclusively assesses fees has not made corrections to comply with state
laws and procedures in the budgeting, expenditures, and financial reporting of public funds, the
state auditor:
(i) shall provide a recommended timeline for corrective actions;
(ii) may prohibit the state or local fee-assessing unit from accessing money held by the
state; and
(iii) may prohibit a state or local fee-assessing unit from accessing money held in an
account of a financial institution by filing an action in district court requesting an order of the
court to prohibit a financial institution from providing the fee-assessing unit access to an
account.
(c) The state auditor shall remove a limitation on accessing funds under Subsection
(8)(b) upon compliance with state laws and procedures in the budgeting, expenditures, and
financial reporting of public funds.
(d) If a local taxing or fee-assessing unit has not adopted a budget in compliance with
state law, the state auditor:
(i) shall provide notice to the taxing or fee-assessing unit of the unit's failure to
comply;
(ii) may prohibit the taxing or fee-assessing unit from accessing money held by the
state; and
(iii) may prohibit a taxing or fee-assessing unit from accessing money held in an
account of a financial institution by:
(A) contacting the taxing or fee-assessing unit's financial institution and requesting that
the institution prohibit access to the account; or
(B) filing an action in district court requesting an order of the court to prohibit a
financial institution from providing the taxing or fee-assessing unit access to an account.
(e) If the local taxing or fee-assessing unit adopts a budget in compliance with state
law, the state auditor shall eliminate a limitation on accessing funds described in Subsection
(8)(d).
(9) The state auditor may not withhold funds under Subsection (7)(h) until a county has
received formal written notice of noncompliance from the auditor and has been given 60 days
to make the specified corrections.
(10) (a) The state auditor may not withhold funds under Subsection (7)(i) until the state
auditor receives a notice of non-registration, as that term is defined in Section 
67-1a-15
.
(b) If the state auditor receives a notice of non-registration, the state auditor may
prohibit the local government entity or limited purpose entity, as those terms are defined in
Section 
67-1a-15
, from accessing:
(i) money held by the state; and
(ii) money held in an account of a financial institution by:
(A) contacting the entity's financial institution and requesting that the institution
prohibit access to the account; or
(B) filing an action in district court requesting an order of the court to prohibit a
financial institution from providing the entity access to an account.
(c) The state auditor shall remove the prohibition on accessing funds described in
Subsection (10)(b) if the state auditor received a notice of registration, as that term is defined in
Section 
67-1a-15
, from the lieutenant governor.
(11) Notwithstanding Subsection (7)(g), (7)(h), (7)(i), (8)(b), (8)(d), or (10)(b), the
state auditor:
(a) shall authorize a disbursement by a local government entity or limited purpose
entity, as those terms are defined in Section 
67-1a-15
, or a state or local taxing or fee-assessing
unit if the disbursement is necessary to:
(i) avoid a major disruption in the operations of the local government entity, limited
purpose entity, or state or local taxing or fee-assessing unit; or
(ii) meet debt service obligations; and
(b) may authorize a disbursement by a local government entity, limited purpose entity,
or state or local taxing or fee-assessing unit as the state auditor determines is appropriate.
(12) (a) The state auditor may seek relief under the Utah Rules of Civil Procedure to
take temporary custody of public funds if an action is necessary to protect public funds from
being improperly diverted from their intended public purpose.
(b) If the state auditor seeks relief under Subsection (12)(a):
(i) the state auditor is not required to exhaust the procedures in Subsection (7) or (8);
and
(ii) the state treasurer may hold the public funds in accordance with Section 
67-4-1
 if a
court orders the public funds to be protected from improper diversion from their public
purpose.
(13) The state auditor shall:
(a) establish audit guidelines and procedures for audits of local mental health and
substance abuse authorities and their contract providers, conducted pursuant to Title 17,
Chapter 43, Part 2, Local Substance Abuse Authorities, Title 17, Chapter 43, Part 3, Local
Mental Health Authorities, Title 51, Chapter 2a, Accounting Reports from Political
Subdivisions, Interlocal Organizations, and Other Local Entities Act, and Title 62A, Chapter
15, Substance Abuse and Mental Health Act; and
(b) ensure that those guidelines and procedures provide assurances to the state that:
(i) state and federal funds appropriated to local mental health authorities are used for
mental health purposes;
(ii) a private provider under an annual or otherwise ongoing contract to provide
comprehensive mental health programs or services for a local mental health authority is in
compliance with state and local contract requirements, and state and federal law;
(iii) state and federal funds appropriated to local substance abuse authorities are used
for substance abuse programs and services; and
(iv) a private provider under an annual or otherwise ongoing contract to provide
comprehensive substance abuse programs or services for a local substance abuse authority is in
compliance with state and local contract requirements, and state and federal law.
(14) 
(a)
 The state auditor may, in accordance with the auditor's responsibilities for
political subdivisions of the state as provided in Title 51, Chapter 2a, Accounting Reports from
Political Subdivisions, Interlocal Organizations, and Other Local Entities Act, initiate audits or
investigations of any political subdivision that are necessary to determine honesty and integrity
in fiscal affairs, accuracy and reliability of financial statements, effectiveness, and adequacy of
financial controls and compliance with the law.
(b) If the state auditor receives notice under Subsection 
11-41-104
(7) from the
Governor's Office of Economic Opportunity on or after July 1, 2024, the state auditor may
initiate an audit or investigation of the public entity subject to the notice to determine
compliance with Section 
11-41-103
.
(15) (a) The state auditor may not audit work that the state auditor performed before
becoming state auditor.
(b) If the state auditor has previously been a responsible official in state government
whose work has not yet been audited, the Legislature shall:
(i) designate how that work shall be audited; and
(ii) provide additional funding for those audits, if necessary.
(16) The state auditor shall:
(a) with the assistance, advice, and recommendations of an advisory committee
appointed by the state auditor from among local district boards of trustees, officers, and
employees and special service district boards, officers, and employees:
(i) prepare a Uniform Accounting Manual for Local Districts that:
(A) prescribes a uniform system of accounting and uniform budgeting and reporting
procedures for local districts under Title 17B, Limited Purpose Local Government Entities -
Local Districts, and special service districts under Title 17D, Chapter 1, Special Service
District Act;
(B) conforms with generally accepted accounting principles; and
(C) prescribes reasonable exceptions and modifications for smaller districts to the
uniform system of accounting, budgeting, and reporting;
(ii) maintain the manual under this Subsection (16)(a) so that the manual continues to
reflect generally accepted accounting principles;
(iii) conduct a continuing review and modification of procedures in order to improve
them;
(iv) prepare and supply each district with suitable budget and reporting forms; and
(v) (A) prepare instructional materials, conduct training programs, and render other
services considered necessary to assist local districts and special service districts in
implementing the uniform accounting, budgeting, and reporting procedures; and
(B) ensure that any training described in Subsection (16)(a)(v)(A) complies with Title
63G, Chapter 22, State Training and Certification Requirements; and
(b) continually analyze and evaluate the accounting, budgeting, and reporting practices
and experiences of specific local districts and special service districts selected by the state
auditor and make the information available to all districts.
(17) (a) The following records in the custody or control of the state auditor are
protected records under Title 63G, Chapter 2, Government Records Access and Management
Act:
(i) records that would disclose information relating to allegations of personal
misconduct, gross mismanagement, or illegal activity of a past or present governmental
employee if the information or allegation cannot be corroborated by the state auditor through
other documents or evidence, and the records relating to the allegation are not relied upon by
the state auditor in preparing a final audit report;
(ii) records and audit workpapers to the extent the workpapers would disclose the
identity of an individual who during the course of an audit, communicated the existence of any
waste of public funds, property, or manpower, or a violation or suspected violation of a law,
rule, or regulation adopted under the laws of this state, a political subdivision of the state, or
any recognized entity of the United States, if the information was disclosed on the condition
that the identity of the individual be protected;
(iii) before an audit is completed and the final audit report is released, records or drafts
circulated to an individual who is not an employee or head of a governmental entity for the
individual's response or information;
(iv) records that would disclose an outline or part of any audit survey plans or audit
program; and
(v) requests for audits, if disclosure would risk circumvention of an audit.
(b) The provisions of Subsections (17)(a)(i), (ii), and (iii) do not prohibit the disclosure
of records or information that relate to a violation of the law by a governmental entity or
employee to a government prosecutor or peace officer.
(c) The provisions of this Subsection (17) do not limit the authority otherwise given to
the state auditor to classify a document as public, private, controlled, or protected under Title
63G, Chapter 2, Government Records Access and Management Act.
(d) (i) As used in this Subsection (17)(d), "record dispute" means a dispute between the
state auditor and the subject of an audit performed by the state auditor as to whether the state
auditor may release a record, as defined in Section 
63G-2-103
, to the public that the state
auditor gained access to in the course of the state auditor's audit but which the subject of the
audit claims is not subject to disclosure under Title 63G, Chapter 2, Government Records
Access and Management Act.
(ii) The state auditor may submit a record dispute to the State Records Committee,
created in Section 
63G-2-501
, for a determination of whether the state auditor may, in
conjunction with the state auditor's release of an audit report, release to the public the record
that is the subject of the record dispute.
(iii) The state auditor or the subject of the audit may seek judicial review of a State
Records Committee determination under Subsection (17)(d)(ii), as provided in Section
63G-2-404
.
(18) If the state auditor conducts an audit of an entity that the state auditor has
previously audited and finds that the entity has not implemented a recommendation made by
the state auditor in a previous audit, the state auditor shall notify the Legislative Management
Committee through the Legislative Management Committee's audit subcommittee that the
entity has not implemented that recommendation.
(19) The state auditor shall, with the advice and consent of the Senate, appoint the state
privacy officer described in Section 
67-3-13
.
(20) The state auditor shall report, or ensure that another government entity reports, on
the financial, operational, and performance metrics for the state system of higher education and
the state system of public education, including metrics in relation to students, programs, and
schools within those systems.