Rep. Norm Thurston — Voting Record

Bill

Number

S.B. 273 (2023GS)

Sponsor

Sen. Ipson, D.

Final action

Governor Signed 3/23/2023

Outcome

Became law — signed by Gov. Spencer J. Cox

Summary

What it does

• This bill:
• provides definitions;
• requires notice of certain settlements be provided to the Legislative Management Committee;
• adjusts thresholds for executive and legislative approval of settlement agreements involving the state or the state's subdivisions;
• clarifies that final approval is contingent upon receipt of approvals of lower threshold amounts;
• requires the Legislature's general counsel to receive notice of and updates on negotiation proceedings, and permits the general counsel to attend negotiations in some circumstances;
• requires notice of certain settlements to be sent to the Legislative Management Committee;
• revises language for clarity; and
• makes technical changes.

Every vote on this bill

Bill text

STATE SETTLEMENT AGREEMENTS REQUIREMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Don L. Ipson
House Sponsor: 
Robert M. Spendlove
LONG TITLE
General Description:
This bill modifies provisions related to approval of settlements. 
Highlighted Provisions:
This bill:
▸ provides definitions;
▸ requires notice of certain settlements be provided to the Legislative Management
Committee;
▸ adjusts thresholds for executive and legislative approval of settlement agreements
involving the state or the state's subdivisions;
▸ clarifies that final approval is contingent upon receipt of approvals of lower
threshold amounts;
▸ requires the Legislature's general counsel to receive notice of and updates on
negotiation proceedings, and permits the general counsel to attend negotiations in
some circumstances;
▸ requires notice of certain settlements to be sent to the Legislative Management
Committee;
▸ revises language for clarity; and
▸ makes technical changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
63G-10-102
, as last amended by Laws of Utah 2020, Chapter 365
63G-10-201
, as renumbered and amended by Laws of Utah 2008, Chapter 382
63G-10-202
, as renumbered and amended by Laws of Utah 2008, Chapter 382
63G-10-301
, as renumbered and amended by Laws of Utah 2008, Chapter 382
63G-10-302
, as renumbered and amended by Laws of Utah 2008, Chapter 382
63G-10-303
, as renumbered and amended by Laws of Utah 2008, Chapter 382
63G-10-401
, as renumbered and amended by Laws of Utah 2008, Chapter 382
63G-10-402
, as enacted by Laws of Utah 2011, Chapter 361
63G-10-403
, as last amended by Laws of Utah 2017, Chapter 348
63G-10-503
, as last amended by Laws of Utah 2021, Chapter 63
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
63G-10-102
 is amended to read:
63G-10-102.
Definitions.
As used in this chapter:
(1) (a) "Action settlement agreement" includes a stipulation, consent decree, settlement
agreement, or any other legally binding document or representation that resolves a threatened
or pending lawsuit between the state and another party by requiring the state to take legally
binding action.
(b) "Action settlement agreement" includes stipulations, consent decrees, settlement
agreements, and other legally binding documents or representations resolving a dispute
between the state and another party when the state is required to pay money and required to
take legally binding action.
(c) "Action settlement agreement" does not include:
(i) the internal process established by the Department of Transportation to resolve
construction contract claims;
(ii) any resolution of an employment dispute or claim made by an employee of the state
of Utah against the state as employer;
(iii) adjudicative orders issued by the State Tax Commission, the Public Service
Commission, the Labor Commission, or the Department of Workforce Services; or
(iv) the settlement of disputes arising from audits, defaults, or breaches of permits,
contracts of sale, easements, or leases by the School and Institutional Trust Lands
Administration.
(2) (a) "Agency" means each department, commission, board, council, agency,
institution, officer, corporation, fund, division, office, committee, authority, laboratory, library,
unit, bureau, panel, or other administrative unit of the state.
(b) "Agency" includes the legislative branch, the judicial branch, the attorney general's
office, the State Board of Education, the Utah Board of Higher Education, the institutional
councils of each higher education institution, and each higher education institution.
(3) (a) "Financial settlement agreement" includes a stipulation, consent decree,
settlement agreement, and any other legally binding document or representation that resolves a
dispute between the state and another party exclusively by requiring the payment of money
from one party to the other.
(b) "Financial settlement agreement" does not include:
(i) agreements made under the internal process established by the Department of
Transportation to resolve construction contract claims;
(ii) adjudicative orders issued by the State Tax Commission, Public Service
Commission, Labor Commission, or the Department of Workforce Services;
(iii) the settlement of disputes arising from audits, defaults, or breaches of permits,
contracts of sale, easements, or leases by the School and Institutional Trust Lands
Administration; or
(iv) agreements made under the internal processes established by the Division of
Facilities Construction and Management or by law to resolve construction contract claims
made against the state by contractors or subcontractors.
(4) "Government entities" means the state and its political subdivisions.
(5) "Settlement agreement report" means a report that:
(a) states the total amount of the settlement;
(b) states the payer of the settlement;
(c) states the recipient of the payment;
(d) summarizes the circumstances related to the settlement; and
(e) contains a copy of the settlement agreement, unless the agreement is not permitted
to be disclosed due to a court order or other legal requirement.
Section 2. Section 
63G-10-201
 is amended to read:
63G-10-201.
Governor to approve financial settlement agreements.
(1) Before legally binding the state by executing a financial settlement agreement that
might cost government entities more than [
$100,000
] 
$250,000
 to implement, an agency shall
submit the proposed financial settlement agreement to the governor for the governor's approval
or rejection.
(2) The governor shall approve or reject each financial settlement agreement.
(3) (a) If the governor approves the financial settlement agreement, the agency may
execute the agreement.
(b) If the governor rejects the financial settlement agreement, the agency may not
execute the agreement.
(4) If an agency executes a financial settlement agreement without obtaining the
governor's approval under this section, the governor may issue an executive order declaring the
settlement agreement void.
(5) An agency executing an agreement under this section shall give notice of the
settlement to the Legislative Management Committee by sending a settlement agreement report
to the president of the Senate, the speaker of the House of Representatives, and the director of
the Office of Legislative Research and General Counsel within three business days of executing
the agreement.
Section 3. Section 
63G-10-202
 is amended to read:
63G-10-202.
Legislative review and approval of financial settlement agreements.
(1) (a) Before legally binding the state by executing a financial settlement agreement
that might cost government entities more than [
$500,000
] 
$1,000,000
 to implement, an agency
shall:
(i) submit the proposed financial settlement agreement to the governor for the
governor's approval or rejection as required by Section 
63G-10-201
; and
(ii) if the governor approves the financial settlement agreement, submit the financial
settlement agreement to the Legislative Management Committee for its review and
recommendations.
(b) The Legislative Management Committee shall review the financial settlement
agreement and may:
(i) recommend that the agency execute the financial settlement agreement;
(ii) recommend that the agency reject the financial settlement agreement; or
(iii) recommend to the governor that the governor call a special session of the
Legislature to review and approve or reject the financial settlement agreement.
(2) (a) Before legally binding the state by executing a financial settlement agreement
that might cost government entities more than [
$1,000,000
] 
$2,000,000
 to implement, an
agency shall:
(i) 
upon initiation of negotiations that an agency reasonably believes to have the
potential to lead to a settlement agreement:
(A) notify the Legislature's general counsel that negotiations have commenced;
(B) continue to keep the Legislature's general counsel informed of material
developments in the negotiation process; and
(C) permit the Legislature's general counsel to attend the negotiations;
(ii)
 submit the proposed financial settlement agreement to the governor for the
governor's approval or rejection as required by Section 
63G-10-201
; and
[
(ii)
] 
(iii)
 if the governor approves the financial settlement agreement, submit the
financial settlement agreement to the Legislature for its approval in an annual general session
or a special session.
(b) (i) If the Legislature approves the financial settlement agreement, the agency may
execute the agreement.
(ii) If the Legislature rejects the financial settlement agreement, the agency may not
execute the agreement.
(c) If an agency executes a financial settlement agreement without obtaining the
Legislature's approval under this Subsection (2):
(i) the governor may issue an executive order declaring the settlement agreement void;
or
(ii) the Legislature may pass a joint resolution declaring the settlement agreement void.
Section 4. Section 
63G-10-301
 is amended to read:
63G-10-301.
Cost evaluation of action settlement agreements.
(1) Before legally binding the state to an action settlement agreement that might cost
the state a total of [
$100,000
] 
$250,000
 or more to implement, an agency shall estimate the
cost of implementing the action settlement agreement and submit that cost estimate to the
governor and the Legislative Management Committee.
(2) The Legislative Management Committee may:
(a) direct its staff to make an independent cost estimate of the cost of implementing the
action settlement agreement; and
(b) affirmatively adopt a cost estimate as the benchmark for determining which
authorizations established by this part are necessary.
Section 5. Section 
63G-10-302
 is amended to read:
63G-10-302.
Governor to approve action settlement agreements.
(1) Before legally binding the state by executing an action settlement agreement that
might cost government entities more than [
$100,000
] 
$250,000
 to implement, an agency shall
submit the proposed settlement agreement to the governor for the governor's approval or
rejection.
(2) The governor shall approve or reject each action settlement agreement.
(3) (a) If the governor approves the action settlement agreement, the agency may
execute the agreement.
(b) If the governor rejects the action settlement agreement, the agency may not execute
the agreement.
(4) If an agency executes an action settlement agreement without obtaining the
governor's approval under this section, the governor may issue an executive order declaring the
settlement agreement void.
(5) An agency executing an agreement under this section shall give notice of the
settlement to the Legislative Management Committee by sending a settlement agreement report
to the president of the Senate, the speaker of the House of Representatives, and the director of
the Office of Legislative Research and General Counsel within three business days of executing
the agreement.
Section 6. Section 
63G-10-303
 is amended to read:
63G-10-303.
Legislative review and approval of action settlement agreements.
(1) (a) Before legally binding the state by executing an action settlement agreement that
might cost government entities more than [
$500,000
] 
$1,000,000
 to implement, an agency
shall:
(i) submit the proposed action settlement agreement to the governor for the governor's
approval or rejection as required by Section 
63G-10-302
; and
(ii) if the governor approves the action settlement agreement, submit the action
settlement agreement to the Legislative Management Committee for its review and
recommendations.
(b) The Legislative Management Committee shall review the action settlement
agreement and may:
(i) recommend that the agency execute the settlement agreement;
(ii) recommend that the agency reject the settlement agreement; or
(iii) recommend to the governor that the governor call a special session of the
Legislature to review and approve or reject the settlement agreement.
(2) (a) Before legally binding the state by executing an action settlement agreement that
might cost government entities more than [
$1,000,000
] 
$2,000,000
 to implement, an agency
shall:
(i) submit the proposed action settlement agreement to the governor for the governor's
approval or rejection as required by Section 
63G-10-302
; and
(ii) if the governor approves the action settlement agreement, submit the action
settlement agreement to the Legislature for its approval in an annual general session or a
special session.
(b) (i) If the Legislature approves the action settlement agreement, the agency may
execute the agreement.
(ii) If the Legislature rejects the action settlement agreement, the agency may not
execute the agreement.
(c) If an agency executes an action settlement agreement without obtaining the
Legislature's approval under this Subsection (2):
(i) the governor may issue an executive order declaring the action settlement agreement
void; or
(ii) the Legislature may pass a joint resolution declaring the action settlement
agreement void.
Section 7. Section 
63G-10-401
 is amended to read:
63G-10-401.
Condemnation, inverse condemnation settlements involving the
Department of Transportation.
(1) Notwithstanding the provisions of this chapter, the Department of Transportation
need not obtain the approval of the governor or the Legislature for financial or action
settlement agreements that resolve condemnation or inverse condemnation cases.
(2) Financial settlement agreements involving condemnation or inverse condemnation
cases for $1,000,000 to $2,000,000 over the Department of Transportation's original appraisal
shall be presented to the Transportation Commission for approval or rejection.
(3) (a) Financial settlement agreements involving condemnation or inverse
condemnation cases for more than $2,000,000 over the Department of Transportation's original
appraisal and all action settlement agreements that resolve condemnation or inverse
condemnation cases shall be presented:
(i) to the Transportation Commission for approval or rejection; and
(ii) if the financial or action settlement agreement is approved by the Transportation
Commission, to the Legislative Management Committee.
(b) The Legislative Management Committee may recommend approval or rejection of
the financial or action settlement agreement.
(4) (a) The Department of Transportation may not enter into a financial settlement
agreement that resolves a condemnation or inverse condemnation case and requires payment of
$1,000,000 to $2,000,000 over the Department of Transportation's original appraisal until the
Transportation Commission has approved the agreement.
(b) The Department of Transportation may not enter into a financial settlement
agreement that resolves a condemnation or inverse condemnation case and requires payment of
more than $2,000,000 over the Department of Transportation's original appraisal or enter into
an action settlement agreement that resolves a condemnation or inverse condemnation case
until:
(i) the Transportation Commission has approved the agreement; and
(ii) the Legislative Management Committee has reviewed the agreement.
(5) The Department of Transportation shall, for each settlement agreement approved
under this section for an amount greater than $1,000,000 but less than $2,000,000, give notice
to the Legislative Management Committee by sending a settlement agreement report to the
president of the Senate, the speaker of the House of Representatives, and the director of the
Office of Legislative Research and General Counsel within three business days of executing the
agreement.
Section 8. Section 
63G-10-402
 is amended to read:
63G-10-402.
Department of Transportation construction contract claim
settlement agreement approval and review.
(1) As used in this section:
(a) "Claims review board" means a committee established by the department to hear
unresolved claims and make recommendations for settlement to the deputy director of the
department.
(b) "Department" means the Department of Transportation created in Section 
72-1-201
.
(c) "Settlement agreement" includes stipulations, consent decrees, settlement
agreements, or other legally binding documents or representations resolving a dispute between
the department and another party when the department is required to pay money or required to
take legally binding action.
(2) The department shall obtain the approval of the Transportation Commission or the
governor or review by the Legislative Management Committee of a settlement agreement that
involves a construction contract claim in accordance with this section.
(3) A construction contract claim settlement agreement that is being recommended by
the department's claims review board that might cost government entities more than [
$100,000
]
$250,000
 to implement shall be presented to the Transportation Commission for approval or
rejection.
(4) A construction contract claim settlement agreement that is being recommended by
the department's claims review board that might cost government entities more than [
$500,000
]
$1,000,000
 to implement shall be presented:
(a) to the Transportation Commission for approval or rejection; and
(b) to the governor for approval or rejection.
(5) (a) A construction contract claim settlement agreement that is being recommended
by the department's claims review board that might cost government entities more than
[
$1,000,000
] 
$2,000,000
 to implement shall be presented:
(i) to the Transportation Commission for approval or rejection;
(ii) to the governor for approval or rejection; and
(iii) if the construction contract claim settlement agreement is approved by the
Transportation Commission and the governor, to the Legislative Management Committee.
(b) The Legislative Management Committee may recommend approval or rejection of
the construction contract claim settlement agreement.
(6) (a) The department may not enter into a construction contract claim settlement
agreement that is being recommended by the department's claims review board that might cost
government entities more than [
$100,000
] 
$250,000
 to implement until the Transportation
Commission has approved the agreement.
(b) The department may not enter into a construction contract claim settlement
agreement that is being recommended by the department's claims review board that might cost
government entities more than [
$500,000
] 
$1,000,000
 to implement until the Transportation
Commission and the governor have approved the agreement.
(c) The department may not enter into a construction contract claim settlement
agreement that is being recommended by the department's claims review board that might cost
government entities more than [
$1,000,000
] 
$2,000,000
 to implement until:
(i) the Transportation Commission has approved the agreement;
(ii) the governor has approved the agreement; and
(iii) the Legislative Management Committee has reviewed the agreement.
(7) The department shall, for each settlement agreement approved under this section
for an amount greater than $250,000 but less than $2,000,000, give notice to the Legislative
Management Committee by sending a settlement agreement report to the president of the
Senate, the speaker of the House of Representatives, and the director of the Office of
Legislative Research and General Counsel within three business days of executing the
agreement.
Section 9. Section 
63G-10-403
 is amended to read:
63G-10-403.
Department of Transportation bid or request for proposals protest
settlement agreement approval and review.
(1) As used in this section:
(a) "Department" means the Department of Transportation created in Section 
72-1-201
.
(b) "Settlement agreement" includes stipulations, consent decrees, settlement
agreements, or other legally binding documents or representations resolving a dispute between
the department and another party when the department is required to pay money or required to
take legally binding action.
(2) The department shall obtain the approval of the Transportation Commission or the
governor or review by the Legislative Management Committee of a settlement agreement that
involves a bid or request for proposal protest in accordance with this section.
(3) A settlement agreement that is being settled by the department as part of a bid or
request for proposal protest, in accordance with Subsection 
63G-6a-1602
(8), that might cost
government entities more than [
$100,000
] 
$250,000
 to implement shall be presented to the
Transportation Commission for approval or rejection.
(4) A settlement agreement that is being settled by the department as part of a bid or
request for proposal protest, in accordance with Subsection 
63G-6a-1602
(8), that might cost
government entities more than [
$500,000
] 
$1,000,000
 to implement shall be presented:
(a) to the Transportation Commission for approval or rejection; and
(b) to the governor for approval or rejection.
(5) (a) A settlement agreement that is being settled by the department as part of a bid or
request for proposal protest, in accordance with Subsection 
63G-6a-1602
(8), that might cost
government entities more than [
$1,000,000
] 
$2,000,000
 to implement shall be presented:
(i) to the Transportation Commission for approval or rejection;
(ii) to the governor for approval or rejection; and
(iii) if the settlement agreement is approved by the Transportation Commission and the
governor, to the Legislative Management Committee.
(b) The Legislative Management Committee may recommend approval or rejection of
the settlement agreement.
(6) (a) The department may not enter into a settlement agreement that resolves a bid or
request for proposal protest, in accordance with Subsection 
63G-6a-1602
(8), that might cost
government entities more than [
$100,000
] 
$250,000
 to implement until the Transportation
Commission has approved the agreement.
(b) The department may not enter into a settlement agreement that resolves a bid or
request for proposal protest, in accordance with Subsection 
63G-6a-1602
(8), that might cost
government entities more than [
$500,000
] 
$1,000,000
 to implement until the Transportation
Commission and the governor have approved the agreement.
(c) The department may not enter into a settlement agreement that resolves a bid or
request for proposal protest, in accordance with Subsection 
63G-6a-1602
(8), that might cost
government entities more than [
$1,000,000
] 
$2,000,000
 to implement until:
(i) the Transportation Commission has approved the agreement;
(ii) the governor has approved the agreement; and
(iii) the Legislative Management Committee has reviewed the agreement.
(7) The department shall, for each settlement agreement approved under this section
for an amount greater than $250,000 but less than $2,000,000, give notice to the Legislative
Management Committee by sending a settlement agreement report to the president of the
Senate, the speaker of the House of Representatives, and the director of the Office of
Legislative Research and General Counsel within three business days of executing the
agreement.
Section 10. Section 
63G-10-503
 is amended to read:
63G-10-503.
Risk manager's authority to settle a claim -- Additional approvals
required.
(1) The risk manager may compromise and settle any claim for which the risk
management fund may be liable:
(a) 
if the settlement amount is $500,000 or less,
 on the risk manager's own authority[
,
if the settlement amount is $100,000 or less
];
(b) 
if the settlement amount is more than $500,000 but not more than $1,000,000,
 upon
the approval of the attorney general, or the attorney general's representative, and the executive
director[
, if the settlement amount is more than $100,000 but not more than $250,000
];
(c) 
if the settlement amount is more than $1,000,000 but not more than $1,500,000,
upon the governor's approval[
, if the settlement amount is more than $250,000 but not more
than $500,000
] 
after receiving approval under Subsection (1)(b)
;
(d) 
if the settlement amount is more than $1,500,000 but not more than $2,000,000,
upon the Legislative Management Committee's approval[
, if the settlement amount is more
than $500,000 but not more than $1,000,000
] 
after receiving approval under Subsections (1)(b)
and (c)
; and
(e) 
if the settlement amount is more than $2,000,000,
 upon the Legislature's approval[
,
if the settlement amount is more than $1,000,000.
] 
after receiving approval under Subsections
(1)(b), (c), and (d).
(2) (a) The risk manager shall[
: (i) as soon as reasonably possible after negotiations
begin, notify legislative general counsel of
]
, upon initiation of
 negotiations that the risk
manager reasonably believes to have the potential to lead to a settlement requiring approval
under Subsection (1)(d) or (e)[
; and
]
:
(i) notify the Legislature's general counsel that negotiations have commenced;
(ii) continue to keep [
legislative
] 
the Legislature's
 general counsel informed of material
developments in the negotiation process[
.
]
; and
(iii) permit the Legislature's general counsel to attend negotiations.
(b) The information that the risk manager shall provide to [
legislative
] 
the Legislature's
general counsel under Subsection (2)(a) includes:
(i) the nature of the claim that is the subject of the settlement negotiations;
(ii) the known facts that support the claim and the known facts that controvert the
claim; and
(iii) the risk manager's assessment of the potential liability under the claim.
(c) A document, paper, electronic data, communication, or other material that the risk
manager provides to legislative general counsel in the discharge of the risk manager's
responsibility under Subsection (2) may not be considered to be a record, as defined in Section
63G-2-103
.
(d) Information provided by the risk manager to legislative general counsel under
Subsection (2)(a) and a communication between the risk manager and legislative general
counsel under Subsection (2)(a) shall be considered to be evidence that is subject to Rule 408
of the Utah Rules of Evidence to the fullest extent possible.
(e) Subsections (2)(c) and (d) apply regardless of whether:
(i) the risk manager acts personally under this section or through counsel or another
individual acting under the risk manager's direction; or
(ii) other individuals under the direction of legislative general counsel are involved in
the process described in this section.
(3) The risk manager shall, for each settlement agreement approved under this section
for an amount greater than $250,000 but less than $1,500,000, give notice of the settlement to
the Legislative Management Committee by sending a settlement agreement report to the
president of the Senate, the speaker of the House of Representatives, and the director of the
Office of Legislative Research and General Counsel within three business days of executing the
agreement.