Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 51 First Substitute (2024GS)

Sponsor

Rep. Spendlove, R.

Final action

Governor Signed 3/20/2024

Outcome

Became law — signed by Gov. Spencer J. Cox

Summary

What it does

• This bill:
• directs the Office of the Legislative Fiscal Analyst to analyze risks associated with the funding of the Medicaid program and to recommend budgetary actions based on that analysis;
• renames the Medicaid Expansion Fund as the Medicaid ACA Fund and extends that fund's sunset date;
• merges the Medicaid Restricted Account into the Medicaid Growth Reduction and Budget Stabilization Account;
• allows the Legislature to appropriate money to and from the Medicaid Growth Reduction and Budget Stabilization Account, with certain conditions; and
• makes technical and conforming changes.

Every vote on this bill

Bill text

HEALTH AND HUMAN SERVICES FUNDING AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Robert M. Spendlove
Senate Sponsor: 
Michael S. Kennedy
LONG TITLE
Committee Note:
The Health and Human Services Interim Committee recommended this bill.
Legislative Vote: 15 voting for 0 voting against 4 absent
General Description:
This bill addresses risk analysis and budgetary buffers related to the Medicaid program.
Highlighted Provisions:
This bill:
▸ directs the Office of the Legislative Fiscal Analyst to analyze risks associated with
the funding of the Medicaid program and to recommend budgetary actions based on
that analysis;
▸ renames the Medicaid Expansion Fund as the Medicaid ACA Fund and extends that
fund's sunset date;
▸ merges the Medicaid Restricted Account into the Medicaid Growth Reduction and
Budget Stabilization Account;
▸ allows the Legislature to appropriate money to and from the Medicaid Growth
Reduction and Budget Stabilization Account, with certain conditions; and
▸ makes technical and conforming changes.
Money Appropriated in this Bill:
This bill appropriates in fiscal year 2024:
▸ to the General Fund Restricted -- Medicaid Growth Reduction and Budget
Stabilization Account, as a one-time appropriation:
• from the General Fund Restricted -- Medicaid Restricted Account, $23,700,000.
Other Special Clauses:
This bill provides a special effective date.
Utah Code Sections Affected:
AMENDS:
17B-2a-818.5
, as last amended by Laws of Utah 2023, Chapter 327
19-1-206
, as last amended by Laws of Utah 2023, Chapter 327
26B-1-315
, as last amended by Laws of Utah 2023, Chapter 471 and renumbered and
amended by Laws of Utah 2023, Chapter 305
26B-3-113
, as renumbered and amended by Laws of Utah 2023, Chapter 306
26B-3-210
, as renumbered and amended by Laws of Utah 2023, Chapter 306
26B-3-211
, as renumbered and amended by Laws of Utah 2023, Chapter 306
26B-3-504
, as renumbered and amended by Laws of Utah 2023, Chapter 306
26B-3-508
, as renumbered and amended by Laws of Utah 2023, Chapter 306
26B-3-512
, as renumbered and amended by Laws of Utah 2023, Chapter 306
26B-3-601
, as renumbered and amended by Laws of Utah 2023, Chapter 306
26B-3-604
, as renumbered and amended by Laws of Utah 2023, Chapter 306
26B-3-605
, as renumbered and amended by Laws of Utah 2023, Chapter 306
26B-3-608
, as renumbered and amended by Laws of Utah 2023, Chapter 306
26B-3-612
, as renumbered and amended by Laws of Utah 2023, Chapter 306
36-12-13
, as last amended by Laws of Utah 2023, Chapters 16, 430
59-12-103
 (Contingently Superseded 01/01/25)
, as last amended by Laws of Utah
2023, Chapters 22, 213, 329, 361, and 471
59-12-103
 (Contingently Effective 01/01/25)
, as last amended by Laws of Utah 2023,
Chapters 22, 213, 329, 361, 459, and 471
63A-5b-607
, as last amended by Laws of Utah 2023, Chapter 329
63C-9-403
, as last amended by Laws of Utah 2023, Chapter 329
63I-1-226
 (Superseded 07/01/24)
, as last amended by Laws of Utah 2023, Chapters
249, 269, 270, 275, 332, 335, 420, and 495 and repealed and reenacted by Laws of
Utah 2023, Chapter 329
63I-1-226
 (Effective 07/01/24)
, as last amended by Laws of Utah 2023, Chapters 249,
269, 270, 275, 310, 332, 335, 420, and 495 and repealed and reenacted by Laws of
Utah 2023, Chapter 329 and last amended by Coordination Clause, Laws of Utah
2023, Chapters 329, 332
63I-2-226
 (Superseded 07/01/24)
, as last amended by Laws of Utah 2023, Chapters 33,
139, 249, 295, and 465 and repealed and reenacted by Laws of Utah 2023, Chapter
329
63I-2-226
 (Effective 07/01/24)
, as last amended by Laws of Utah 2023, Chapters 33,
139, 249, 295, 310, and 465 and repealed and reenacted by Laws of Utah 2023,
Chapter 329 and last amended by Coordination Clause, Laws of Utah 2023, Chapter
329
63J-1-315
, as last amended by Laws of Utah 2023, Chapter 329
72-6-107.5
, as last amended by Laws of Utah 2023, Chapter 330
79-2-404
, as last amended by Laws of Utah 2023, Chapter 330
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
17B-2a-818.5
 is amended to read:
17B-2a-818.5.
Contracting powers of public transit districts -- Health insurance
coverage.
(1) As used in this section:
(a) "Aggregate" means the sum of all contracts, change orders, and modifications
related to a single project.
(b) "Change order" means the same as that term is defined in Section 
63G-6a-103
.
(c) "Employee" means, as defined in Section 
34A-2-104
, an "employee," "worker," or
"operative" who:
(i) works at least 30 hours per calendar week; and
(ii) meets employer eligibility waiting requirements for health care insurance, which
may not exceed the first day of the calendar month following 60 days after the day on which
the individual is hired.
(d) "Health benefit plan" means:
(i) the same as that term is defined in Section 
31A-1-301
; or
(ii) an employee welfare benefit plan:
(A) established under the Employee Retirement Income Security Act of 1974, 29
U.S.C. Sec. 1001 et seq.;
(B) for an employer with 100 or more employees; and
(C) in which the employer establishes a self-funded or partially self-funded group
health plan to provide medical care for the employer's employees and dependents of the
employees.
(e) "Qualified health coverage" means the same as that term is defined in Section
26B-3-909
.
(f) "Subcontractor" means the same as that term is defined in Section 
63A-5b-605
.
(g) "Third party administrator" or "administrator" means the same as that term is
defined in Section 
31A-1-301
.
(2) Except as provided in Subsection (3), the requirements of this section apply to:
(a) a contractor of a design or construction contract entered into by the public transit
district on or after July 1, 2009, if the prime contract is in an aggregate amount equal to or
greater than $2,000,000; and
(b) a subcontractor of a contractor of a design or construction contract entered into by
the public transit district on or after July 1, 2009, if the subcontract is in an aggregate amount
equal to or greater than $1,000,000.
(3) The requirements of this section do not apply to a contractor or subcontractor
described in Subsection (2) if:
(a) the application of this section jeopardizes the receipt of federal funds;
(b) the contract is a sole source contract; or
(c) the contract is an emergency procurement.
(4) A person that intentionally uses change orders, contract modifications, or multiple
contracts to circumvent the requirements of this section is guilty of an infraction.
(5) (a) A contractor subject to the requirements of this section shall demonstrate to the
public transit district that the contractor has and will maintain an offer of qualified health
coverage for the contractor's employees and the employee's dependents during the duration of
the contract by submitting to the public transit district a written statement that:
(i) the contractor offers qualified health coverage that complies with Section
26B-3-909
;
(ii) is from:
(A) an actuary selected by the contractor or the contractor's insurer;
(B) an underwriter who is responsible for developing the employer group's premium
rates; or
(C) if the contractor provides a health benefit plan described in Subsection (1)(d)(ii),
an actuary or underwriter selected by a third party administrator; and
(iii) was created within one year before the day on which the statement is submitted.
(b) (i) A contractor that provides a health benefit plan described in Subsection (1)(d)(ii)
shall provide the actuary or underwriter selected by an administrator, as described in
Subsection (5)(a)(ii)(C), sufficient information to determine whether the contractor's
contribution to the health benefit plan and the actuarial value of the health benefit plan meet the
requirements of qualified health coverage.
(ii) A contractor may not make a change to the contractor's contribution to the health
benefit plan, unless the contractor provides notice to:
(A) the actuary or underwriter selected by an administrator as described in Subsection
(5)(a)(ii)(C), for the actuary or underwriter to update the written statement described in
Subsection (5)(a) in compliance with this section; and
(B) the public transit district.
(c) A contractor that is subject to the requirements of this section shall:
(i) place a requirement in each of the contractor's subcontracts that a subcontractor that
is subject to the requirements of this section shall obtain and maintain an offer of qualified
health coverage for the subcontractor's employees and the employees' dependents during the
duration of the subcontract; and
(ii) obtain from a subcontractor that is subject to the requirements of this section a
written statement that:
(A) the subcontractor offers qualified health coverage that complies with Section
26B-3-909
;
(B) is from an actuary selected by the subcontractor or the subcontractor's insurer, an
underwriter who is responsible for developing the employer group's premium rates, or if the
subcontractor provides a health benefit plan described in Subsection (1)(d)(ii), an actuary or
underwriter selected by an administrator; and
(C) was created within one year before the day on which the contractor obtains the
statement.
(d) (i) (A) A contractor that fails to maintain an offer of qualified health coverage as
described in Subsection (5)(a) during the duration of the contract is subject to penalties in
accordance with an ordinance adopted by the public transit district under Subsection (6).
(B) A contractor is not subject to penalties for the failure of a subcontractor to obtain
and maintain an offer of qualified health coverage described in Subsection (5)(c)(i).
(ii) (A) A subcontractor that fails to obtain and maintain an offer of qualified health
coverage described in Subsection (5)(c)(i) during the duration of the subcontract is subject to
penalties in accordance with an ordinance adopted by the public transit district under
Subsection (6).
(B) A subcontractor is not subject to penalties for the failure of a contractor to maintain
an offer of qualified health coverage described in Subsection (5)(a).
(6) The public transit district shall adopt ordinances:
(a) in coordination with:
(i) the Department of Environmental Quality in accordance with Section 
19-1-206
;
(ii) the Department of Natural Resources in accordance with Section 
79-2-404
;
(iii) the Division of Facilities Construction and Management in accordance with
Section 
63A-5b-607
;
(iv) the State Capitol Preservation Board in accordance with Section 
63C-9-403
; and
(v) the Department of Transportation in accordance with Section 
72-6-107.5
; and
(b) that establish:
(i) the requirements and procedures a contractor and a subcontractor shall follow to
demonstrate compliance with this section, including:
(A) that a contractor or subcontractor's compliance with this section is subject to an
audit by the public transit district or the Office of the Legislative Auditor General;
(B) that a contractor that is subject to the requirements of this section shall obtain a
written statement described in Subsection (5)(a); and
(C) that a subcontractor that is subject to the requirements of this section shall obtain a
written statement described in Subsection (5)(c)(ii);
(ii) the penalties that may be imposed if a contractor or subcontractor intentionally
violates the provisions of this section, which may include:
(A) a three-month suspension of the contractor or subcontractor from entering into
future contracts with the public transit district upon the first violation;
(B) a six-month suspension of the contractor or subcontractor from entering into future
contracts with the public transit district upon the second violation;
(C) an action for debarment of the contractor or subcontractor in accordance with
Section 
63G-6a-904
 upon the third or subsequent violation; and
(D) monetary penalties which may not exceed 50% of the amount necessary to
purchase qualified health coverage for employees and dependents of employees of the
contractor or subcontractor who were not offered qualified health coverage during the duration
of the contract; and
(iii) a website on which the district shall post the commercially equivalent benchmark,
for the qualified health coverage identified in Subsection (1)(e), that is provided by the
Department of Health and Human Services, in accordance with Subsection 
26B-3-909
(2).
(7) (a) (i) In addition to the penalties imposed under Subsection (6)(b)(ii), a contractor
or subcontractor who intentionally violates the provisions of this section is liable to the
employee for health care costs that would have been covered by qualified health coverage.
(ii) An employer has an affirmative defense to a cause of action under Subsection
(7)(a)(i) if:
(A) the employer relied in good faith on a written statement described in Subsection
(5)(a) or (5)(c)(ii); or
(B) a department or division determines that compliance with this section is not
required under the provisions of Subsection (3).
(b) An employee has a private right of action only against the employee's employer to
enforce the provisions of this Subsection (7).
(8) Any penalties imposed and collected under this section shall be deposited into the
Medicaid [
Restricted
] 
Growth Reduction and Budget Stabilization
 Account created in Section
[
26B-1-309
] 
63J-1-315
.
(9) The failure of a contractor or subcontractor to provide qualified health coverage as
required by this section:
(a) may not be the basis for a protest or other action from a prospective bidder, offeror,
or contractor under:
(i) Section 
63G-6a-1602
; or
(ii) any other provision in Title 63G, Chapter 6a, Utah Procurement Code; and
(b) may not be used by the procurement entity or a prospective bidder, offeror, or
contractor as a basis for any action or suit that would suspend, disrupt, or terminate the design
or construction.
(10) An administrator, including an administrator's actuary or underwriter, who
provides a written statement under Subsection (5)(a) or (c) regarding the qualified health
coverage of a contractor or subcontractor who provides a health benefit plan described in
Subsection (1)(d)(ii):
(a) subject to Subsection (10)(b), is not liable for an error in the written statement,
unless the administrator commits gross negligence in preparing the written statement;
(b) is not liable for any error in the written statement if the administrator relied in good
faith on information from the contractor or subcontractor; and
(c) may require as a condition of providing the written statement that a contractor or
subcontractor hold the administrator harmless for an action arising under this section.
Section 2. Section 
19-1-206
 is amended to read:
19-1-206.
Contracting powers of department -- Health insurance coverage.
(1) As used in this section:
(a) "Aggregate" means the sum of all contracts, change orders, and modifications
related to a single project.
(b) "Change order" means the same as that term is defined in Section 
63G-6a-103
.
(c) "Employee" means, as defined in Section 
34A-2-104
, an "employee," "worker," or
"operative" who:
(i) works at least 30 hours per calendar week; and
(ii) meets employer eligibility waiting requirements for health care insurance, which
may not exceed the first day of the calendar month following 60 days after the day on which
the individual is hired.
(d) "Health benefit plan" means:
(i) the same as that term is defined in Section 
31A-1-301
; or
(ii) an employee welfare benefit plan:
(A) established under the Employee Retirement Income Security Act of 1974, 29
U.S.C. Sec. 1001 et seq.;
(B) for an employer with 100 or more employees; and
(C) in which the employer establishes a self-funded or partially self-funded group
health plan to provide medical care for the employer's employees and dependents of the
employees.
(e) "Qualified health coverage" means the same as that term is defined in Section
26B-3-909
.
(f) "Subcontractor" means the same as that term is defined in Section 
63A-5b-605
.
(g) "Third party administrator" or "administrator" means the same as that term is
defined in Section 
31A-1-301
.
(2) Except as provided in Subsection (3), the requirements of this section apply to:
(a) a contractor of a design or construction contract entered into by, or delegated to, the
department, or a division or board of the department, on or after July 1, 2009, if the prime
contract is in an aggregate amount equal to or greater than $2,000,000; and
(b) a subcontractor of a contractor of a design or construction contract entered into by,
or delegated to, the department, or a division or board of the department, on or after July 1,
2009, if the subcontract is in an aggregate amount equal to or greater than $1,000,000.
(3) This section does not apply to contracts entered into by the department or a division
or board of the department if:
(a) the application of this section jeopardizes the receipt of federal funds;
(b) the contract or agreement is between:
(i) the department or a division or board of the department; and
(ii) (A) another agency of the state;
(B) the federal government;
(C) another state;
(D) an interstate agency;
(E) a political subdivision of this state; or
(F) a political subdivision of another state;
(c) the executive director determines that applying the requirements of this section to a
particular contract interferes with the effective response to an immediate health and safety
threat from the environment; or
(d) the contract is:
(i) a sole source contract; or
(ii) an emergency procurement.
(4) A person that intentionally uses change orders, contract modifications, or multiple
contracts to circumvent the requirements of this section is guilty of an infraction.
(5) (a) A contractor subject to the requirements of this section shall demonstrate to the
executive director that the contractor has and will maintain an offer of qualified health
coverage for the contractor's employees and the employees' dependents during the duration of
the contract by submitting to the executive director a written statement that:
(i) the contractor offers qualified health coverage that complies with Section
26B-3-909
;
(ii) is from:
(A) an actuary selected by the contractor or the contractor's insurer;
(B) an underwriter who is responsible for developing the employer group's premium
rates; or
(C) if the contractor provides a health benefit plan described in Subsection (1)(d)(ii),
an actuary or underwriter selected by a third party administrator; and
(iii) was created within one year before the day on which the statement is submitted.
(b) (i) A contractor that provides a health benefit plan described in Subsection (1)(d)(ii)
shall provide the actuary or underwriter selected by an administrator, as described in
Subsection (5)(a)(ii)(C), sufficient information to determine whether the contractor's
contribution to the health benefit plan and the actuarial value of the health benefit plan meet the
requirements of qualified health coverage.
(ii) A contractor may not make a change to the contractor's contribution to the health
benefit plan, unless the contractor provides notice to:
(A) the actuary or underwriter selected by an administrator, as described in Subsection
(5)(a)(ii)(C), for the actuary or underwriter to update the written statement described in
Subsection (5)(a) in compliance with this section; and
(B) the department.
(c) A contractor that is subject to the requirements of this section shall:
(i) place a requirement in each of the contractor's subcontracts that a subcontractor that
is subject to the requirements of this section shall obtain and maintain an offer of qualified
health coverage for the subcontractor's employees and the employees' dependents during the
duration of the subcontract; and
(ii) obtain from a subcontractor that is subject to the requirements of this section a
written statement that:
(A) the subcontractor offers qualified health coverage that complies with Section
26B-3-909
;
(B) is from an actuary selected by the subcontractor or the subcontractor's insurer, an
underwriter who is responsible for developing the employer group's premium rates, or if the
subcontractor provides a health benefit plan described in Subsection (1)(d)(ii), an actuary or
underwriter selected by an administrator; and
(C) was created within one year before the day on which the contractor obtains the
statement.
(d) (i) (A) A contractor that fails to maintain an offer of qualified health coverage
described in Subsection (5)(a) during the duration of the contract is subject to penalties in
accordance with administrative rules adopted by the department under Subsection (6).
(B) A contractor is not subject to penalties for the failure of a subcontractor to obtain
and maintain an offer of qualified health coverage described in Subsection (5)(c)(i).
(ii) (A) A subcontractor that fails to obtain and maintain an offer of qualified health
coverage described in Subsection (5)(c) during the duration of the subcontract is subject to
penalties in accordance with administrative rules adopted by the department under Subsection
(6).
(B) A subcontractor is not subject to penalties for the failure of a contractor to maintain
an offer of qualified health coverage described in Subsection (5)(a).
(6) The department shall adopt administrative rules:
(a) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
(b) in coordination with:
(i) a public transit district in accordance with Section 
17B-2a-818.5
;
(ii) the Department of Natural Resources in accordance with Section 
79-2-404
;
(iii) the Division of Facilities Construction and Management in accordance with
Section 
63A-5b-607
;
(iv) the State Capitol Preservation Board in accordance with Section 
63C-9-403
;
(v) the Department of Transportation in accordance with Section 
72-6-107.5
; and
(vi) the Legislature's Administrative Rules Review and General Oversight Committee;
and
(c) that establish:
(i) the requirements and procedures a contractor and a subcontractor shall follow to
demonstrate compliance with this section, including:
(A) that a contractor or subcontractor's compliance with this section is subject to an
audit by the department or the Office of the Legislative Auditor General;
(B) that a contractor that is subject to the requirements of this section shall obtain a
written statement described in Subsection (5)(a); and
(C) that a subcontractor that is subject to the requirements of this section shall obtain a
written statement described in Subsection (5)(c)(ii);
(ii) the penalties that may be imposed if a contractor or subcontractor intentionally
violates the provisions of this section, which may include:
(A) a three-month suspension of the contractor or subcontractor from entering into
future contracts with the state upon the first violation;
(B) a six-month suspension of the contractor or subcontractor from entering into future
contracts with the state upon the second violation;
(C) an action for debarment of the contractor or subcontractor in accordance with
Section 
63G-6a-904
 upon the third or subsequent violation; and
(D) notwithstanding Section 
19-1-303
, monetary penalties which may not exceed 50%
of the amount necessary to purchase qualified health coverage for an employee and the
dependents of an employee of the contractor or subcontractor who was not offered qualified
health coverage during the duration of the contract; and
(iii) a website on which the department shall post the commercially equivalent
benchmark, for the qualified health coverage identified in Subsection (1)(e), that is provided by
the Department of Health and Human Services, in accordance with Subsection 
26B-3-909
(2).
(7) (a) (i) In addition to the penalties imposed under Subsection (6)(c)(ii), a contractor
or subcontractor who intentionally violates the provisions of this section is liable to the
employee for health care costs that would have been covered by qualified health coverage.
(ii) An employer has an affirmative defense to a cause of action under Subsection
(7)(a)(i) if:
(A) the employer relied in good faith on a written statement described in Subsection
(5)(a) or (5)(c)(ii); or
(B) the department determines that compliance with this section is not required under
the provisions of Subsection (3).
(b) An employee has a private right of action only against the employee's employer to
enforce the provisions of this Subsection (7).
(8) Any penalties imposed and collected under this section shall be deposited into the
Medicaid [
Restricted
] 
Growth Reduction and Budget Stabilization
 Account created in Section
[
26B-1-309
] 
63J-1-315
.
(9) The failure of a contractor or subcontractor to provide qualified health coverage as
required by this section:
(a) may not be the basis for a protest or other action from a prospective bidder, offeror,
or contractor under:
(i) Section 
63G-6a-1602
; or
(ii) any other provision in Title 63G, Chapter 6a, Utah Procurement Code; and
(b) may not be used by the procurement entity or a prospective bidder, offeror, or
contractor as a basis for any action or suit that would suspend, disrupt, or terminate the design
or construction.
(10) An administrator, including an administrator's actuary or underwriter, who
provides a written statement under Subsection (5)(a) or (c) regarding the qualified health
coverage of a contractor or subcontractor who provides a health benefit plan described in
Subsection (1)(d)(ii):
(a) subject to Subsection (10)(b), is not liable for an error in the written statement,
unless the administrator commits gross negligence in preparing the written statement;
(b) is not liable for any error in the written statement if the administrator relied in good
faith on information from the contractor or subcontractor; and
(c) may require as a condition of providing the written statement that a contractor or
subcontractor hold the administrator harmless for an action arising under this section.
Section 3. Section 
26B-1-315
 is amended to read:
26B-1-315.
Medicaid ACA Fund.
(1) There is created an expendable special revenue fund known as the "Medicaid
[
Expansion
] 
ACA
 Fund."
(2) The fund consists of:
(a) assessments collected under Chapter 3, Part 5, Inpatient Hospital Assessment;
(b) intergovernmental transfers under Section 
26B-3-508
;
(c) savings attributable to the health coverage improvement program, as defined in
Section 
26B-3-501
, as determined by the department;
(d) savings attributable to the enhancement waiver program, as defined in Section
26B-3-501
, as determined by the department;
(e) savings attributable to the Medicaid waiver expansion, as defined in Section
26B-3-501
, as determined by the department;
(f) savings attributable to the inclusion of psychotropic drugs on the preferred drug list
under Subsection 
26B-3-105
(3) as determined by the department;
(g) revenues collected from the sales tax described in Subsection 
59-12-103
(11);
(h) gifts, grants, donations, or any other conveyance of money that may be made to the
fund from private sources;
(i) interest earned on money in the fund; and
(j) additional amounts as appropriated by the Legislature.
(3) (a) The fund shall earn interest.
(b) All interest earned on fund money shall be deposited into the fund.
(4) (a) A state agency administering the provisions of Chapter 3, Part 5, Inpatient
Hospital Assessment, may use money from the fund to pay the costs, not otherwise paid for
with federal funds or other revenue sources, of:
(i) the health coverage improvement program as defined in Section 
26B-3-501
;
(ii) the enhancement waiver program as defined in Section 
26B-3-501
;
(iii) a Medicaid waiver expansion as defined in Section 
26B-3-501
; and
(iv) the outpatient upper payment limit supplemental payments under Section
26B-3-511
.
(b) A state agency administering the provisions of Chapter 3, Part 5, Inpatient Hospital
Assessment, may not use:
(i) funds described in Subsection (2)(b) to pay the cost of private outpatient upper
payment limit supplemental payments; or
(ii) money in the fund for any purpose not described in Subsection (4)(a).
Section 4. Section 
26B-3-113
 is amended to read:
26B-3-113.
Expanding the Medicaid program.
(1) As used in this section:
(a) "Federal poverty level" means the same as that term is defined in Section
26B-3-207
.
[
(b) "Medicaid expansion" means an expansion of the Medicaid program in accordance
with this section.
]
[
(c)
] 
(b)
 "Medicaid [
Expansion
] 
ACA
 Fund" means the Medicaid [
Expansion
] 
ACA
Fund created in Section 
26B-1-315
.
(c) "Medicaid expansion" means an expansion of the Medicaid program in accordance
with this section.
(2) (a) As set forth in Subsections (2) through (5), eligibility criteria for the Medicaid
program shall be expanded to cover additional low-income individuals.
(b) The department shall continue to seek approval from CMS to implement the
Medicaid waiver expansion as defined in Section [
26B-1-112
] 
26B-3-210
.
(c) The department may implement any provision described in Subsections
[
26B-3-112
(2)(b)(iii) through (viii)
] 
26B-3-210
(2)(b)(iii) through (viii)
 in a Medicaid
expansion if the department receives approval from CMS to implement that provision.
(3) The department shall expand the Medicaid program in accordance with this
Subsection (3) if the department:
(a) receives approval from CMS to:
(i) expand Medicaid coverage to eligible individuals whose income is below 95% of
the federal poverty level;
(ii) obtain maximum federal financial participation under 42 U.S.C. Sec. 1396d(b) for
enrolling an individual in the Medicaid expansion under this Subsection (3); and
(iii) permit the state to close enrollment in the Medicaid expansion under this
Subsection (3) if the department has insufficient funds to provide services to new enrollment
under the Medicaid expansion under this Subsection (3);
(b) pays the state portion of costs for the Medicaid expansion under this Subsection (3)
with funds from:
(i) the Medicaid [
Expansion
] 
ACA
 Fund;
(ii) county contributions to the nonfederal share of Medicaid expenditures; or
(iii) any other contributions, funds, or transfers from a nonstate agency for Medicaid
expenditures; and
(c) closes the Medicaid program to new enrollment under the Medicaid expansion
under this Subsection (3) if the department projects that the cost of the Medicaid expansion
under this Subsection (3) will exceed the appropriations for the fiscal year that are authorized
by the Legislature through an appropriations act adopted in accordance with Title 63J, Chapter
1, Budgetary Procedures Act.
(4) (a) The department shall expand the Medicaid program in accordance with this
Subsection (4) if the department:
(i) receives approval from CMS to:
(A) expand Medicaid coverage to eligible individuals whose income is below 95% of
the federal poverty level;
(B) obtain maximum federal financial participation under 42 U.S.C. Sec. 1396d(y) for
enrolling an individual in the Medicaid expansion under this Subsection (4); and
(C) permit the state to close enrollment in the Medicaid expansion under this
Subsection (4) if the department has insufficient funds to provide services to new enrollment
under the Medicaid expansion under this Subsection (4);
(ii) pays the state portion of costs for the Medicaid expansion under this Subsection (4)
with funds from:
(A) the Medicaid [
Expansion
] 
ACA
 Fund;
(B) county contributions to the nonfederal share of Medicaid expenditures; or
(C) any other contributions, funds, or transfers from a nonstate agency for Medicaid
expenditures; and
(iii) closes the Medicaid program to new enrollment under the Medicaid expansion
under this Subsection (4) if the department projects that the cost of the Medicaid expansion
under this Subsection (4) will exceed the appropriations for the fiscal year that are authorized
by the Legislature through an appropriations act adopted in accordance with Title 63J, Chapter
1, Budgetary Procedures Act.
(b) The department shall submit a waiver, an amendment to an existing waiver, or a
state plan amendment to CMS to:
(i) administer federal funds for the Medicaid expansion under this Subsection (4)
according to a per capita cap developed by the department that includes an annual inflationary
adjustment, accounts for differences in cost among categories of Medicaid expansion enrollees,
and provides greater flexibility to the state than the current Medicaid payment model;
(ii) limit, in certain circumstances as defined by the department, the ability of a
qualified entity to determine presumptive eligibility for Medicaid coverage for an individual
enrolled in a Medicaid expansion under this Subsection (4);
(iii) impose a lock-out period if an individual enrolled in a Medicaid expansion under
this Subsection (4) violates certain program requirements as defined by the department;
(iv) allow an individual enrolled in a Medicaid expansion under this Subsection (4) to
remain in the Medicaid program for up to a 12-month certification period as defined by the
department; and
(v) allow federal Medicaid funds to be used for housing support for eligible enrollees
in the Medicaid expansion under this Subsection (4).
(5) (a) (i) If CMS does not approve a waiver to expand the Medicaid program in
accordance with Subsection (4)(a) on or before January 1, 2020, the department shall develop
proposals to implement additional flexibilities and cost controls, including cost sharing tools,
within a Medicaid expansion under this Subsection (5) through a request to CMS for a waiver
or state plan amendment.
(ii) The request for a waiver or state plan amendment described in Subsection (5)(a)(i)
shall include:
(A) a path to self-sufficiency for qualified adults in the Medicaid expansion that
includes employment and training as defined in 7 U.S.C. Sec. 2015(d)(4); and
(B) a requirement that an individual who is offered a private health benefit plan by an
employer to enroll in the employer's health plan.
(iii) The department shall submit the request for a waiver or state plan amendment
developed under Subsection (5)(a)(i) on or before March 15, 2020.
(b) Notwithstanding Sections 
26B-3-127
 and 
63J-5-204
, and in accordance with this
Subsection (5), eligibility for the Medicaid program shall be expanded to include all persons in
the optional Medicaid expansion population under PPACA and the Health Care Education
Reconciliation Act of 2010, Pub. L. No. 111-152, and related federal regulations and guidance,
on the earlier of:
(i) the day on which CMS approves a waiver to implement the provisions described in
Subsections (5)(a)(ii)(A) and (B); or
(ii) July 1, 2020.
(c) The department shall seek a waiver, or an amendment to an existing waiver, from
federal law to:
(i) implement each provision described in Subsections 
26B-3-210
(2)(b)(iii) through
(viii) in a Medicaid expansion under this Subsection (5);
(ii) limit, in certain circumstances as defined by the department, the ability of a
qualified entity to determine presumptive eligibility for Medicaid coverage for an individual
enrolled in a Medicaid expansion under this Subsection (5); and
(iii) impose a lock-out period if an individual enrolled in a Medicaid expansion under
this Subsection (5) violates certain program requirements as defined by the department.
(d) The eligibility criteria in this Subsection (5) shall be construed to include all
individuals eligible for the health coverage improvement program under Section 
26B-3-207
.
(e) The department shall pay the state portion of costs for a Medicaid expansion under
this Subsection (5) entirely from:
(i) the Medicaid [
Expansion
] 
ACA
 Fund;
(ii) county contributions to the nonfederal share of Medicaid expenditures; or
(iii) any other contributions, funds, or transfers from a nonstate agency for Medicaid
expenditures.
(f) If the costs of the Medicaid expansion under this Subsection (5) exceed the funds
available under Subsection (5)(e):
(i) the department may reduce or eliminate optional Medicaid services under this
chapter;
(ii) savings, as determined by the department, from the reduction or elimination of
optional Medicaid services under Subsection (5)(f)(i) shall be deposited into the Medicaid
[
Expansion
] 
ACA
 Fund; and
(iii) the department may submit to CMS a request for waivers, or an amendment of
existing waivers, from federal law necessary to implement budget controls within the Medicaid
program to address the deficiency.
(g) If the costs of the Medicaid expansion under this Subsection (5) are projected by
the department to exceed the funds available in the current fiscal year under Subsection (5)(e),
including savings resulting from any action taken under Subsection (5)(f):
(i) the governor shall direct the department and Department of Workforce Services to
reduce commitments and expenditures by an amount sufficient to offset the deficiency:
(A) proportionate to the share of total current fiscal year General Fund appropriations
for each of those agencies; and
(B) up to 10% of each agency's total current fiscal year General Fund appropriations;
(ii) the Division of Finance shall reduce allotments to the department and Department
of Workforce Services by a percentage:
(A) proportionate to the amount of the deficiency; and
(B) up to 10% of each agency's total current fiscal year General Fund appropriations;
and
(iii) the Division of Finance shall deposit the total amount from the reduced allotments
described in Subsection (5)(g)(ii) into the Medicaid [
Expansion
] 
ACA
 Fund.
(6) The department shall maximize federal financial participation in implementing this
section, including by seeking to obtain any necessary federal approvals or waivers.
(7) Notwithstanding Sections 
17-43-201
 and 
17-43-301
, a county does not have to
provide matching funds to the state for the cost of providing Medicaid services to newly
enrolled individuals who qualify for Medicaid coverage under a Medicaid expansion.
(8) The department shall report to the Social Services Appropriations Subcommittee on
or before November 1 of each year that a Medicaid expansion is operational:
(a) the number of individuals who enrolled in the Medicaid expansion;
(b) costs to the state for the Medicaid expansion;
(c) estimated costs to the state for the Medicaid expansion for the current and
following fiscal years;
(d) recommendations to control costs of the Medicaid expansion; and
(e) as calculated in accordance with Subsections 
26B-3-506
(4) and 
26B-3-606
(2), the
state's net cost of the qualified Medicaid expansion.
Section 5. Section 
26B-3-210
 is amended to read:
26B-3-210.
Medicaid waiver expansion.
(1) As used in this section:
(a) "Federal poverty level" means the same as that term is defined in Section
26B-3-207
.
(b) "Medicaid waiver expansion" means an expansion of the Medicaid program in
accordance with this section.
(2) (a) Before January 1, 2019, the department shall apply to CMS for approval of a
waiver or state plan amendment to implement the Medicaid waiver expansion.
(b) The Medicaid waiver expansion shall:
(i) expand Medicaid coverage to eligible individuals whose income is below 95% of
the federal poverty level;
(ii) obtain maximum federal financial participation under 42 U.S.C. Sec. 1396d(y) for
enrolling an individual in the Medicaid program;
(iii) provide Medicaid benefits through the state's Medicaid accountable care
organizations in areas where a Medicaid accountable care organization is implemented;
(iv) integrate the delivery of behavioral health services and physical health services
with Medicaid accountable care organizations in select geographic areas of the state that
choose an integrated model;
(v) include a path to self-sufficiency, including work activities as defined in 42 U.S.C.
Sec. 607(d), for qualified adults;
(vi) require an individual who is offered a private health benefit plan by an employer to
enroll in the employer's health plan;
(vii) sunset in accordance with Subsection (5)(a); and
(viii) permit the state to close enrollment in the Medicaid waiver expansion if the
department has insufficient funding to provide services to additional eligible individuals.
(3) If the Medicaid waiver described in Subsection (2)(a) is approved, the department
may only pay the state portion of costs for the Medicaid waiver expansion with appropriations
from:
(a) the Medicaid [
Expansion
] 
ACA
 Fund, created in Section 
26B-1-315
;
(b) county contributions to the non-federal share of Medicaid expenditures; and
(c) any other contributions, funds, or transfers from a non-state agency for Medicaid
expenditures.
(4) (a) In consultation with the department, Medicaid accountable care organizations
and counties that elect to integrate care under Subsection (2)(b)(iv) shall collaborate on
enrollment, engagement of patients, and coordination of services.
(b) As part of the provision described in Subsection (2)(b)(iv), the department shall
apply for a waiver to permit the creation of an integrated delivery system:
(i) for any geographic area that expresses interest in integrating the delivery of services
under Subsection (2)(b)(iv); and
(ii) in which the department:
(A) may permit a local mental health authority to integrate the delivery of behavioral
health services and physical health services;
(B) may permit a county, local mental health authority, or Medicaid accountable care
organization to integrate the delivery of behavioral health services and physical health services
to select groups within the population that are newly eligible under the Medicaid waiver
expansion; and
(C) may make rules in accordance with Title 63G, Chapter 3, Utah Administrative
Rulemaking Act, to integrate payments for behavioral health services and physical health
services to plans or providers.
(5) (a) If federal financial participation for the Medicaid waiver expansion is reduced
below 90%, the authority of the department to implement the Medicaid waiver expansion shall
sunset no later than the next July 1 after the date on which the federal financial participation is
reduced.
(b) The department shall close the program to new enrollment if the cost of the
Medicaid waiver expansion is projected to exceed the appropriations for the fiscal year that are
authorized by the Legislature through an appropriations act adopted in accordance with Title
63J, Chapter 1, Budgetary Procedures Act.
(6) If the Medicaid waiver expansion is approved by CMS, the department shall report
to the Social Services Appropriations Subcommittee on or before November 1 of each year that
the Medicaid waiver expansion is operational:
(a) the number of individuals who enrolled in the Medicaid waiver program;
(b) costs to the state for the Medicaid waiver program;
(c) estimated costs for the current and following state fiscal year; and
(d) recommendations to control costs of the Medicaid waiver expansion.
Section 6. Section 
26B-3-211
 is amended to read:
26B-3-211.
Primary Care Network enhancement waiver program.
(1) As used in this section:
(a) "Enhancement waiver program" means the Primary Care Network enhancement
waiver program described in this section.
(b) "Federal poverty level" means the poverty guidelines established by the secretary of
the United States Department of Health and Human Services under 42 U.S.C. Sec. 9902(2).
(c) "Health coverage improvement program" means the same as that term is defined in
Section 
26B-3-207
.
(d) "Income eligibility ceiling" means the percentage of federal poverty level:
(i) established by the Legislature in an appropriations act adopted pursuant to Title 63J,
Chapter 1, Budgetary Procedures Act; and
(ii) under which an individual may qualify for coverage in the enhancement waiver
program in accordance with this section.
(e) "Optional population" means the optional expansion population under PPACA if
the expansion provides coverage for individuals at or above 95% of the federal poverty level.
(f) "Primary Care Network" means the state Primary Care Network program created by
the Medicaid primary care network demonstration waiver obtained under Section 
26B-3-108
.
(2) The department shall continue to implement the Primary Care Network program for
qualified individuals under the Primary Care Network program.
(3) (a) The division shall apply for a Medicaid waiver or a state plan amendment with
CMS to implement, within the state Medicaid program, the enhancement waiver program
described in this section within six months after the day on which:
(i) the division receives a notice from CMS that the waiver for the Medicaid waiver
expansion submitted under Section 
26B-3-210
, Medicaid waiver expansion, will not be
approved; or
(ii) the division withdraws the waiver for the Medicaid waiver expansion submitted
under Section 
26B-3-210
, Medicaid waiver expansion.
(b) The division may not apply for a waiver under Subsection (3)(a) while a waiver
request under Section 
26B-3-210
, Medicaid waiver expansion, is pending with CMS.
(4) An individual who is eligible for the enhancement waiver program may receive the
following benefits under the enhancement waiver program:
(a) the benefits offered under the Primary Care Network program;
(b) diagnostic testing and procedures;
(c) medical specialty care;
(d) inpatient hospital services;
(e) outpatient hospital services;
(f) outpatient behavioral health care, including outpatient substance use care; and
(g) for an individual who qualifies for the health coverage improvement program, as
approved by CMS, temporary residential treatment for substance use in a short term,
non-institutional, 24-hour facility, without a bed capacity limit, that provides rehabilitation
services that are medically necessary and in accordance with an individualized treatment plan.
(5) An individual is eligible for the enhancement waiver program if, at the time of
enrollment:
(a) the individual is qualified to enroll in the Primary Care Network or the health
coverage improvement program;
(b) the individual's annual income is below the income eligibility ceiling established by
the Legislature under Subsection (1)(d); and
(c) the individual meets the eligibility criteria established by the department under
Subsection (6).
(6) (a) Based on available funding and approval from CMS, the department shall
determine the criteria for an individual to qualify for the enhancement waiver program, based
on the following priority:
(i) adults in the expansion population, as defined in Section 
26B-3-207
, who qualify
for the health coverage improvement program;
(ii) adults with dependent children who qualify for the health coverage improvement
program under Subsection 
26B-3-207
(3);
(iii) adults with dependent children who do not qualify for the health coverage
improvement program; and
(iv) if funding is available, adults without dependent children.
(b) The number of individuals enrolled in the enhancement waiver program may not
exceed 105% of the number of individuals who were enrolled in the Primary Care Network on
December 31, 2017.
(c) The department may only use appropriations from the Medicaid [
Expansion
] 
ACA
Fund created in Section 
26B-1-315
 to fund the state portion of the enhancement waiver
program.
(7) The department may request a modification of the income eligibility ceiling and the
eligibility criteria under Subsection (6) from CMS each fiscal year based on enrollment in the
enhancement waiver program, projected enrollment in the enhancement waiver program, costs
to the state, and the state budget.
(8) The department may implement the enhancement waiver program by contracting
with Medicaid accountable care organizations to administer the enhancement waiver program.
(9) In accordance with Subsections 
26B-3-207
(10) and (11), the department may use
funds that have been appropriated for the health coverage improvement program to implement
the enhancement waiver program.
(10) If the department expands the state Medicaid program to the optional population,
the department:
(a) except as provided in Subsection (11), may not accept any new enrollees into the
enhancement waiver program after the day on which the expansion to the optional population 
is effective;
(b) shall suspend the enhancement waiver program within one year after the day on
which the expansion to the optional population is effective; and
(c) shall work with CMS to maintain the waiver for the enhancement waiver program
submitted under Subsection (3) while the enhancement waiver program is suspended under
Subsection (10)(b).
(11) If, after the expansion to the optional population described in Subsection (10)
takes effect, the expansion to the optional population is repealed by either the state or the
federal government, the department shall reinstate the enhancement waiver program and
continue to accept new enrollees into the enhancement waiver program in accordance with the
provisions of this section.
Section 7. Section 
26B-3-504
 is amended to read:
26B-3-504.
Collection of assessment -- Deposit of revenue -- Rulemaking.
(1) The collecting agent for the assessment imposed under Section 
26B-3-503
 is the
department.
(2) The department is vested with the administration and enforcement of this part, and
may make rules in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking
Act, necessary to:
(a) collect the assessment, intergovernmental transfers, and penalties imposed under
this part;
(b) audit records of a facility that:
(i) is subject to the assessment imposed by this part; and
(ii) does not file a Medicare cost report; and
(c) select a report similar to the Medicare cost report if Medicare no longer uses a
Medicare cost report.
(3) The department shall:
(a) administer the assessment in this part separately from the assessment in Part 7,
Hospital Provider Assessment; and
(b) deposit assessments collected under this part into the Medicaid [
Expansion
] 
ACA
Fund created by Section 
26B-1-315
.
Section 8. Section 
26B-3-508
 is amended to read:
26B-3-508.
State teaching hospital and non-state government hospital mandatory
intergovernmental transfer.
(1) The state teaching hospital and a non-state government hospital shall make an
intergovernmental transfer to the Medicaid [
Expansion
] 
ACA
 Fund created in Section
26B-1-315
, in accordance with this section.
(2) The hospitals described in Subsection (1) shall pay the intergovernmental transfer
beginning on the later of CMS approval of:
(a) the health improvement program waiver under Section 
26B-3-207
; or
(b) the assessment for private hospitals in this part.
(3) The intergovernmental transfer is apportioned as follows:
(a) the state teaching hospital is responsible for:
(i) 30% of the portion of the hospital share specified in Subsections 
26B-3-506
(1)(a)
through (c); and
(ii) 0% of the hospital share specified in Subsection 
26B-3-506
(1)(d); and
(b) non-state government hospitals are responsible for:
(i) 1% of the portion of the hospital share specified in Subsections 
26B-3-506
(1)(a)
through (c); and
(ii) 0% of the hospital share specified in Subsection 
26B-3-506
(1)(d).
(4) The department shall, by rule made in accordance with Title 63G, Chapter 3, Utah
Administrative Rulemaking Act, designate:
(a) the method of calculating the amounts designated in Subsection (3); and
(b) the schedule for the intergovernmental transfers.
Section 9. Section 
26B-3-512
 is amended to read:
26B-3-512.
Repeal of assessment.
(1) The assessment imposed by this part shall be repealed when:
(a) the executive director certifies that:
(i) action by Congress is in effect that disqualifies the assessment imposed by this part
from counting toward state Medicaid funds available to be used to determine the amount of
federal financial participation;
(ii) a decision, enactment, or other determination by the Legislature or by any court,
officer, department, or agency of the state, or of the federal government, is in effect that:
(A) disqualifies the assessment from counting toward state Medicaid funds available to
be used to determine federal financial participation for Medicaid matching funds; or
(B) creates for any reason a failure of the state to use the assessments for at least one of
the Medicaid programs described in this part; or
(iii) a change is in effect that reduces the aggregate hospital inpatient and outpatient
payment rate below the aggregate hospital inpatient and outpatient payment rate for July 1,
2015; or
(b) this part is repealed in accordance with Section 
63I-1-226
.
(2) If the assessment is repealed under Subsection (1):
(a) the division may not collect any assessment or intergovernmental transfer under this
part;
(b) the department shall disburse money in the special Medicaid [
Expansion
] 
ACA
Fund in accordance with the requirements in Subsection 
26B-1-315
(4), to the extent federal
matching is not reduced by CMS due to the repeal of the assessment;
(c) any money remaining in the Medicaid [
Expansion
] 
ACA
 Fund after the
disbursement described in Subsection (2)(b) that was derived from assessments imposed by
this part shall be refunded to the hospitals in proportion to the amount paid by each hospital for
the last three fiscal years; and
(d) any money remaining in the Medicaid [
Expansion
] 
ACA
 Fund after the
disbursements described in Subsections (2)(b) and (c) shall be deposited into the General Fund
by the end of the fiscal year that the assessment is suspended.
Section 10. Section 
26B-3-601
 is amended to read:
26B-3-601.
Definitions.
As used in this part:
(1) "Assessment" means the Medicaid expansion hospital assessment established by
this part.
(2) "CMS" means the Centers for Medicare and Medicaid Services within the United
States Department of Health and Human Services.
(3) "Discharges" means the number of total hospital discharges reported on:
(a) Worksheet S-3 Part I, column 15, lines 14, 16, and 17 of the 2552-10 Medicare cost
report for the applicable assessment year; or
(b) a similar report adopted by the department by administrative rule, if the report
under Subsection (3)(a) is no longer available.
(4) "Division" means the Division of Integrated Healthcare within the department.
(5) "Hospital share" means the hospital share described in Section 
26B-3-605
.
(6) "Medicaid accountable care organization" means a managed care organization, as
defined in 42 C.F.R. Sec. 438, that contracts with the department under the provisions of
Section 
26B-3-202
.
(7) "Medicaid [
Expansion
] 
ACA
 Fund" means the Medicaid [
Expansion
] 
ACA
 Fund
created in Section 
26B-1-315
.
(8) "Medicaid waiver expansion" means the same as that term is defined in Section
26B-3-210
.
(9) "Medicare cost report" means CMS-2552-10, the cost report for electronic filing of
hospitals.
(10) (a) "Non-state government hospital" means a hospital owned by a non-state
government entity.
(b) "Non-state government hospital" does not include:
(i) the Utah State Hospital; or
(ii) a hospital owned by the federal government, including the Veterans Administration
Hospital.
(11) (a) "Private hospital" means:
(i) a privately owned general acute hospital operating in the state as defined in Section
26B-2-201
; or
(ii) a privately owned specialty hospital operating in the state, including a privately
owned hospital for which inpatient admissions are predominantly:
(A) rehabilitation;
(B) psychiatric;
(C) chemical dependency; or
(D) long-term acute care services.
(b) "Private hospital" does not include a facility for residential treatment as defined in
Section 
26B-2-101
.
(12) "Qualified Medicaid expansion" means an expansion of the Medicaid program in
accordance with Subsection 
26B-3-113
(5).
(13) "State teaching hospital" means a state owned teaching hospital that is part of an
institution of higher education.
Section 11. Section 
26B-3-604
 is amended to read:
26B-3-604.
Collection of assessment -- Deposit of revenue -- Rulemaking.
(1) The department shall act as the collecting agent for the assessment imposed under
Section 
26B-3-603
.
(2) The department shall administer and enforce the provisions of this part, and may
make rules, in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
necessary to:
(a) collect the assessment, intergovernmental transfers, and penalties imposed under
this part;
(b) audit records of a facility that:
(i) is subject to the assessment imposed under this part; and
(ii) does not file a Medicare cost report; and
(c) select a report similar to the Medicare cost report if Medicare no longer uses a
Medicare cost report.
(3) The department shall:
(a) administer the assessment in this part separately from the assessments in Part 7,
Hospital Provider Assessment, and Part 5, Inpatient Hospital Assessment; and
(b) deposit assessments collected under this part into the Medicaid [
Expansion
] 
ACA
Fund.
(4) (a) Hospitals shall pay the quarterly assessments imposed by this part to the
division within 15 business days after the original invoice date that appears on the invoice
issued by the division.
(b) The department may make rules creating requirements to allow the time for paying
the assessment to be extended.
Section 12. Section 
26B-3-605
 is amended to read:
26B-3-605.
Hospital share.
(1) The hospital share is:
(a) for the period from April 1, 2019, through June 30, 2020, $15,000,000; and
(b) beginning July 1, 2020, 100% of the state's net cost of the qualified Medicaid
expansion, after deducting appropriate offsets and savings expected as a result of implementing
the qualified Medicaid expansion, including:
(i) savings from:
(A) the Primary Care Network program;
(B) the health coverage improvement program, as defined in Section 
26B-3-207
;
(C) the state portion of inpatient prison medical coverage;
(D) behavioral health coverage; and
(E) county contributions to the non-federal share of Medicaid expenditures; and
(ii) any funds appropriated to the Medicaid [
Expansion
] 
ACA
 Fund.
(2) (a) Beginning July 1, 2020, the hospital share is capped at no more than
$15,000,000 annually.
(b) Beginning July 1, 2020, the division shall prorate the cap specified in Subsection
(2)(a) in any year in which the qualified Medicaid expansion is not in effect for the full fiscal
year.
Section 13. Section 
26B-3-608
 is amended to read:
26B-3-608.
State teaching hospital and non-state government hospital mandatory
intergovernmental transfer.
(1) A state teaching hospital and a non-state government hospital shall make an
intergovernmental transfer to the Medicaid [
Expansion
] 
ACA
 Fund, in accordance with this
section.
(2) The hospitals described in Subsection (1) shall pay the intergovernmental transfer
beginning on the later of:
(a) April 1, 2019; or
(b) CMS approval of the assessment for private hospitals in this part.
(3) The intergovernmental transfer is apportioned between the non-state government
hospitals as follows:
(a) the state teaching hospital shall pay for the portion of the hospital share described in
Section 
26B-3-611
; and
(b) non-state government hospitals shall pay for the portion of the hospital share
described in Section 
26B-3-611
.
(4) The department shall, by rule made in accordance with Title 63G, Chapter 3, Utah
Administrative Rulemaking Act, designate:
(a) the method of calculating the amounts designated in Subsection (3); and
(b) the schedule for the intergovernmental transfers.
Section 14. Section 
26B-3-612
 is amended to read:
26B-3-612.
Suspension of assessment.
(1) The department shall suspend the assessment imposed by this part when the
executive director certifies that:
(a) action by Congress is in effect that disqualifies the assessment imposed by this part
from counting toward state Medicaid funds available to be used to determine the amount of
federal financial participation;
(b) a decision, enactment, or other determination by the Legislature or by any court,
officer, department, or agency of the state, or of the federal government, is in effect that:
(i) disqualifies the assessment from counting toward state Medicaid funds available to
be used to determine federal financial participation for Medicaid matching funds; or
(ii) creates for any reason a failure of the state to use the assessments for at least one of
the Medicaid programs described in this part; or
(c) a change is in effect that reduces the aggregate hospital inpatient and outpatient
payment rate below the aggregate hospital inpatient and outpatient payment rate for July 1,
2015.
(2) If the assessment is suspended under Subsection (1):
(a) the division may not collect any assessment or intergovernmental transfer under this
part;
(b) the division shall disburse money in the Medicaid [
Expansion
] 
ACA
 Fund that was
derived from assessments imposed by this part in accordance with the requirements in
Subsection 
26B-1-315
(4), to the extent federal matching is not reduced by CMS due to the
repeal of the assessment; and
(c) the division shall refund any money remaining in the Medicaid [
Expansion
] 
ACA
Fund after the disbursement described in Subsection (2)(b) that was derived from assessments
imposed by this part to the hospitals in proportion to the amount paid by each hospital for the
last three fiscal years.
Section 15. Section 
36-12-13
 is amended to read:
36-12-13.
Office of the Legislative Fiscal Analyst established -- Powers, functions,
and duties -- Qualifications.
(1) There is established an Office of the Legislative Fiscal Analyst as a permanent staff
office for the Legislature.
(2) The powers, functions, and duties of the Office of the Legislative Fiscal Analyst
under the supervision of the fiscal analyst are:
(a) (i) to estimate general revenue collections, including comparisons of:
(A) current estimates for each major tax type to long-term trends for that tax type;
(B) current estimates for federal fund receipts to long-term federal fund trends; and
(C) current estimates for tax collections and federal fund receipts to long-term trends
deflated for the inflationary effects of debt monetization; and
(ii) to report the analysis required under Subsection (2)(a)(i) to the Legislature's
Executive Appropriations Committee before each annual general session of the Legislature;
(b) to analyze in detail the state budget before the convening of each legislative session
and make recommendations to the Legislature on each item or program appearing in the
budget, including:
(i) funding for and performance of programs, acquisitions, and services currently
undertaken by state government to determine whether each department, agency, institution, or
program should:
(A) continue at its current level of expenditure;
(B) continue at a different level of expenditure; or
(C) be terminated; and
(ii) increases or decreases to spending authority and other resource allocations for the
current and future fiscal years;
(c) to prepare on all proposed bills fiscal estimates that reflect:
(i) potential state government revenue impacts;
(ii) anticipated state government expenditure changes;
(iii) anticipated expenditure changes for county, municipal, special district, or special
service district governments;
(iv) anticipated direct expenditure by Utah residents and businesses, including the unit
cost, number of units, and total cost to all impacted residents and businesses; and
(v) if the proposed bill changes retirement benefits under a system or plan governed by
Title 49, Utah State Retirement and Insurance Benefit Act, the anticipated effect on:
(A) each affected system's or plan's unfunded actuarial accrued liability and actuarial
funded ratio, based on current employer contributions;
(B) employer contributions and member contributions;
(C) a retiree's retirement allowance;
(D) the total cost to active members and retirees; and
(E) the total cost to employers for all active members and retirees;
(d) to indicate whether each proposed bill will impact the regulatory burden for Utah
residents or businesses, and if so:
(i) whether the impact increases or decreases the regulatory burden; and
(ii) whether the change in burden is high, medium, or low;
(e) beginning in 2017 and repeating every three years after 2017, to prepare the
following cycle of analyses of long-term fiscal sustainability:
(i) in year one, the joint revenue volatility report required under Section 
63J-1-205
;
(ii) in year two, a long-term budget for programs appropriated from major funds and
tax types; and
(iii) in year three, a budget stress test 
that:
(A)
 [
comparing
] 
compares
 estimated future revenue to and expenditure from major
funds and tax types under various potential economic conditions;
(B) analyzes the economic and policy risks associated with funding for the Medicaid
program and expansions of the Medicaid program;
(C) measures value at risk; and
(D) recommends budgetary actions to manage risk;
(f) to report instances in which the administration may be failing to carry out the
expressed intent of the Legislature;
(g) to propose and analyze statutory changes for more effective operational economies
or more effective administration;
(h) to prepare, before each annual general session of the Legislature, a summary
showing the current status of the following as compared to the past nine fiscal years:
(i) debt;
(ii) long-term liabilities;
(iii) contingent liabilities;
(iv) General Fund borrowing;
(v) reserves;
(vi) fund and nonlapsing balances; and
(vii) cash funded capital investments;
(i) to make recommendations for addressing the items described in Subsection (2)(h) in
the upcoming annual general session of the Legislature;
(j) to prepare, after each session of the Legislature, a summary showing the effect of
the final legislative program on the financial condition of the state;
(k) to conduct organizational and management improvement studies in accordance
with Title 63J, Chapter 1, Part 9, Government Performance Reporting and Efficiency Process,
and legislative rule;
(l) to prepare and deliver upon request of any interim committee or the Legislative
Management Committee, reports on the finances of the state and on anticipated or proposed
requests for appropriations;
(m) to recommend areas for research studies by the executive department or the interim
committees;
(n) to appoint and develop a professional staff within budget limitations;
(o) to prepare and submit the annual budget request for the office;
(p) to develop a taxpayer receipt:
(i) available to taxpayers through a website; and
(ii) that allows a taxpayer to view on the website an estimate of how the taxpayer's tax
dollars are expended for government purposes; and
(q) to publish or provide other information on taxation and government expenditures
that may be accessed by the public.
(3) The legislative fiscal analyst shall have a master's degree in public administration,
political science, economics, accounting, or the equivalent in academic or practical experience.
(4) In carrying out the duties provided for in this section, the legislative fiscal analyst
may obtain access to all records, documents, and reports necessary to the scope of the
legislative fiscal analyst's duties according to the procedures contained in Title 36, Chapter 14,
Legislative Subpoena Powers.
(5) The Office of the Legislative Fiscal Analyst shall provide any information the State
Board of Education reports in accordance with Subsection 
53E-3-507
(7) to:
(a) the chief sponsor of the proposed bill; and
(b) upon request, any legislator.
Section 16. Section 
59-12-103 (Contingently Superseded 01/01/25)
 is amended to
read:
59-12-103 (Contingently Superseded 01/01/25).
Sales and use tax base -- Rates --
Effective dates -- Use of sales and use tax revenues.
(1) A tax is imposed on the purchaser as provided in this part on the purchase price or
sales price for amounts paid or charged for the following transactions:
(a) retail sales of tangible personal property made within the state;
(b) amounts paid for:
(i) telecommunications service, other than mobile telecommunications service, that
originates and terminates within the boundaries of this state;
(ii) mobile telecommunications service that originates and terminates within the
boundaries of one state only to the extent permitted by the Mobile Telecommunications
Sourcing Act, 4 U.S.C. Sec. 116 et seq.; or
(iii) an ancillary service associated with a:
(A) telecommunications service described in Subsection (1)(b)(i); or
(B) mobile telecommunications service described in Subsection (1)(b)(ii);
(c) sales of the following for commercial use:
(i) gas;
(ii) electricity;
(iii) heat;
(iv) coal;
(v) fuel oil; or
(vi) other fuels;
(d) sales of the following for residential use:
(i) gas;
(ii) electricity;
(iii) heat;
(iv) coal;
(v) fuel oil; or
(vi) other fuels;
(e) sales of prepared food;
(f) except as provided in Section 
59-12-104
, amounts paid or charged as admission or
user fees for theaters, movies, operas, museums, planetariums, shows of any type or nature,
exhibitions, concerts, carnivals, amusement parks, amusement rides, circuses, menageries,
fairs, races, contests, sporting events, dances, boxing matches, wrestling matches, closed circuit
television broadcasts, billiard parlors, pool parlors, bowling lanes, golf, miniature golf, golf
driving ranges, batting cages, skating rinks, ski lifts, ski runs, ski trails, snowmobile trails,
tennis courts, swimming pools, water slides, river runs, jeep tours, boat tours, scenic cruises,
horseback rides, sports activities, or any other amusement, entertainment, recreation,
exhibition, cultural, or athletic activity;
(g) amounts paid or charged for services for repairs or renovations of tangible personal
property, unless Section 
59-12-104
 provides for an exemption from sales and use tax for:
(i) the tangible personal property; and
(ii) parts used in the repairs or renovations of the tangible personal property described
in Subsection (1)(g)(i), regardless of whether:
(A) any parts are actually used in the repairs or renovations of that tangible personal
property; or
(B) the particular parts used in the repairs or renovations of that tangible personal
property are exempt from a tax under this chapter;
(h) except as provided in Subsection 
59-12-104
(7), amounts paid or charged for
assisted cleaning or washing of tangible personal property;
(i) amounts paid or charged for tourist home, hotel, motel, or trailer court
accommodations and services that are regularly rented for less than 30 consecutive days;
(j) amounts paid or charged for laundry or dry cleaning services;
(k) amounts paid or charged for leases or rentals of tangible personal property if within
this state the tangible personal property is:
(i) stored;
(ii) used; or
(iii) otherwise consumed;
(l) amounts paid or charged for tangible personal property if within this state the
tangible personal property is:
(i) stored;
(ii) used; or
(iii) consumed;
(m) amounts paid or charged for a sale:
(i) (A) of a product transferred electronically; or
(B) of a repair or renovation of a product transferred electronically; and
(ii) regardless of whether the sale provides:
(A) a right of permanent use of the product; or
(B) a right to use the product that is less than a permanent use, including a right:
(I) for a definite or specified length of time; and
(II) that terminates upon the occurrence of a condition; and
(n) sales of leased tangible personal property from the lessor to the lessee made in the
state.
(2) (a) Except as provided in Subsections (2)(b) through (f), a state tax and a local tax
are imposed on a transaction described in Subsection (1) equal to the sum of:
(i) a state tax imposed on the transaction at a tax rate equal to the sum of:
(A) 4.70% plus the rate specified in Subsection (11)(a); and
(B) (I) the tax rate the state imposes in accordance with Part 18, Additional State Sales
and Use Tax Act, if the location of the transaction as determined under Sections 
59-12-211
through 
59-12-215
 is in a county in which the state imposes the tax under Part 18, Additional
State Sales and Use Tax Act; and
(II) the tax rate the state imposes in accordance with Part 20, Supplemental State Sales
and Use Tax Act, if the location of the transaction as determined under Sections 
59-12-211
through 
59-12-215
 is in a city, town, or the unincorporated area of a county in which the state
imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
(ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
transaction under this chapter other than this part.
(b) Except as provided in Subsection (2)(f) or (g) and subject to Subsection (2)(l), a
state tax and a local tax are imposed on a transaction described in Subsection (1)(d) equal to
the sum of:
(i) a state tax imposed on the transaction at a tax rate of 2%; and
(ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
transaction under this chapter other than this part.
(c) Except as provided in Subsection (2)(f) or (g), a state tax and a local tax are
imposed on amounts paid or charged for food and food ingredients equal to the sum of:
(i) a state tax imposed on the amounts paid or charged for food and food ingredients at
a tax rate of 1.75%; and
(ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
amounts paid or charged for food and food ingredients under this chapter other than this part.
(d) Except as provided in Subsection (2)(f) or (g), a state tax is imposed on amounts
paid or charged for fuel to a common carrier that is a railroad for use in a locomotive engine at
a rate of 4.85%.
(e) (i) (A) If a shared vehicle owner certifies to the commission, on a form prescribed
by the commission, that the shared vehicle is an individual-owned shared vehicle, a tax
imposed under Subsection (2)(a)(i)(A) does not apply to car sharing, a car-sharing program, a
shared vehicle driver, or a shared vehicle owner.
(B) A shared vehicle owner's certification described in Subsection (2)(e)(i)(A) is
required once during the time that the shared vehicle owner owns the shared vehicle.
(C) The commission shall verify that a shared vehicle is an individual-owned shared
vehicle by verifying that the applicable Utah taxes imposed under this chapter were paid on the
purchase of the shared vehicle.
(D) The exception under Subsection (2)(e)(i)(A) applies to a certified
individual-owned shared vehicle shared through a car-sharing program even if non-certified
shared vehicles are also available to be shared through the same car-sharing program.
(ii) A tax imposed under Subsection (2)(a)(i)(B) or (2)(a)(ii) applies to car sharing.
(iii) (A) A car-sharing program may rely in good faith on a shared vehicle owner's
representation that the shared vehicle is an individual-owned shared vehicle certified with the
commission as described in Subsection (2)(e)(i).
(B) If a car-sharing program relies in good faith on a shared vehicle owner's
representation that the shared vehicle is an individual-owned shared vehicle certified with the
commission as described in Subsection (2)(e)(i), the car-sharing program is not liable for any
tax, penalty, fee, or other sanction imposed on the shared vehicle owner.
(iv) If all shared vehicles shared through a car-sharing program are certified as
described in Subsection (2)(e)(i)(A) for a tax period, the car-sharing program has no obligation
to collect and remit the tax under Subsection (2)(a)(i)(A) for that tax period.
(v) [
(A)
] A car-sharing program is not required to list or otherwise identify an
individual-owned shared vehicle on a return or an attachment to a return.
(vi) A car-sharing program shall:
(A) retain tax information for each car-sharing program transaction; and
(B) provide the information described in Subsection (2)(e)(vi)(A) to the commission at
the commission's request.
(f) (i) For a bundled transaction that is attributable to food and food ingredients and
tangible personal property other than food and food ingredients, a state tax and a local tax is
imposed on the entire bundled transaction equal to the sum of:
(A) a state tax imposed on the entire bundled transaction equal to the sum of:
(I) the tax rate described in Subsection (2)(a)(i)(A); and
(II) (Aa) the tax rate the state imposes in accordance with Part 18, Additional State
Sales and Use Tax Act, if the location of the transaction as determined under Sections
59-12-211
 through 
59-12-215
 is in a county in which the state imposes the tax under Part 18,
Additional State Sales and Use Tax Act; and
(Bb) the tax rate the state imposes in accordance with Part 20, Supplemental State
Sales and Use Tax Act, if the location of the transaction as determined under Sections
59-12-211
 through 
59-12-215
 is in a city, town, or the unincorporated area of a county in which
the state imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
(B) a local tax imposed on the entire bundled transaction at the sum of the tax rates
described in Subsection (2)(a)(ii).
(ii) If an optional computer software maintenance contract is a bundled transaction that
consists of taxable and nontaxable products that are not separately itemized on an invoice or
similar billing document, the purchase of the optional computer software maintenance contract
is 40% taxable under this chapter and 60% nontaxable under this chapter.
(iii) Subject to Subsection (2)(f)(iv), for a bundled transaction other than a bundled
transaction described in Subsection (2)(f)(i) or (ii):
(A) if the sales price of the bundled transaction is attributable to tangible personal
property, a product, or a service that is subject to taxation under this chapter and tangible
personal property, a product, or service that is not subject to taxation under this chapter, the
entire bundled transaction is subject to taxation under this chapter unless:
(I) the seller is able to identify by reasonable and verifiable standards the tangible
personal property, product, or service that is not subject to taxation under this chapter from the
books and records the seller keeps in the seller's regular course of business; or
(II) state or federal law provides otherwise; or
(B) if the sales price of a bundled transaction is attributable to two or more items of
tangible personal property, products, or services that are subject to taxation under this chapter
at different rates, the entire bundled transaction is subject to taxation under this chapter at the
higher tax rate unless:
(I) the seller is able to identify by reasonable and verifiable standards the tangible
personal property, product, or service that is subject to taxation under this chapter at the lower
tax rate from the books and records the seller keeps in the seller's regular course of business; or
(II) state or federal law provides otherwise.
(iv) For purposes of Subsection (2)(f)(iii), books and records that a seller keeps in the
seller's regular course of business includes books and records the seller keeps in the regular
course of business for nontax purposes.
(g) (i) Except as otherwise provided in this chapter and subject to Subsections (2)(g)(ii)
and (iii), if a transaction consists of the sale, lease, or rental of tangible personal property, a
product, or a service that is subject to taxation under this chapter, and the sale, lease, or rental
of tangible personal property, other property, a product, or a service that is not subject to
taxation under this chapter, the entire transaction is subject to taxation under this chapter unless
the seller, at the time of the transaction:
(A) separately states the portion of the transaction that is not subject to taxation under
this chapter on an invoice, bill of sale, or similar document provided to the purchaser; or
(B) is able to identify by reasonable and verifiable standards, from the books and
records the seller keeps in the seller's regular course of business, the portion of the transaction
that is not subject to taxation under this chapter.
(ii) A purchaser and a seller may correct the taxability of a transaction if:
(A) after the transaction occurs, the purchaser and the seller discover that the portion of
the transaction that is not subject to taxation under this chapter was not separately stated on an
invoice, bill of sale, or similar document provided to the purchaser because of an error or
ignorance of the law; and
(B) the seller is able to identify by reasonable and verifiable standards, from the books
and records the seller keeps in the seller's regular course of business, the portion of the
transaction that is not subject to taxation under this chapter.
(iii) For purposes of Subsections (2)(g)(i) and (ii), books and records that a seller keeps
in the seller's regular course of business includes books and records the seller keeps in the
regular course of business for nontax purposes.
(h) (i) If the sales price of a transaction is attributable to two or more items of tangible
personal property, products, or services that are subject to taxation under this chapter at
different rates, the entire purchase is subject to taxation under this chapter at the higher tax rate
unless the seller, at the time of the transaction:
(A) separately states the items subject to taxation under this chapter at each of the
different rates on an invoice, bill of sale, or similar document provided to the purchaser; or
(B) is able to identify by reasonable and verifiable standards the tangible personal
property, product, or service that is subject to taxation under this chapter at the lower tax rate
from the books and records the seller keeps in the seller's regular course of business.
(ii) For purposes of Subsection (2)(h)(i), books and records that a seller keeps in the
seller's regular course of business includes books and records the seller keeps in the regular
course of business for nontax purposes.
(i) Subject to Subsections (2)(j) and (k), a tax rate repeal or tax rate change for a tax
rate imposed under the following shall take effect on the first day of a calendar quarter:
(i) Subsection (2)(a)(i)(A);
(ii) Subsection (2)(b)(i);
(iii) Subsection (2)(c)(i); or
(iv) Subsection (2)(f)(i)(A)(I).
(j) (i) A tax rate increase takes effect on the first day of the first billing period that
begins on or after the effective date of the tax rate increase if the billing period for the
transaction begins before the effective date of a tax rate increase imposed under:
(A) Subsection (2)(a)(i)(A);
(B) Subsection (2)(b)(i);
(C) Subsection (2)(c)(i); or
(D) Subsection (2)(f)(i)(A)(I).
(ii) The repeal of a tax or a tax rate decrease applies to a billing period if the billing
statement for the billing period is rendered on or after the effective date of the repeal of the tax
or the tax rate decrease imposed under:
(A) Subsection (2)(a)(i)(A);
(B) Subsection (2)(b)(i);
(C) Subsection (2)(c)(i); or
(D) Subsection (2)(f)(i)(A)(I).
(k) (i) For a tax rate described in Subsection (2)(k)(ii), if a tax due on a catalogue sale
is computed on the basis of sales and use tax rates published in the catalogue, a tax rate repeal
or change in a tax rate takes effect:
(A) on the first day of a calendar quarter; and
(B) beginning 60 days after the effective date of the tax rate repeal or tax rate change.
(ii) Subsection (2)(k)(i) applies to the tax rates described in the following:
(A) Subsection (2)(a)(i)(A);
(B) Subsection (2)(b)(i);
(C) Subsection (2)(c)(i); or
(D) Subsection (2)(f)(i)(A)(I).
(iii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
the commission may by rule define the term "catalogue sale."
(l) (i) For a location described in Subsection (2)(l)(ii), the commission shall determine
the taxable status of a sale of gas, electricity, heat, coal, fuel oil, or other fuel based on the
predominant use of the gas, electricity, heat, coal, fuel oil, or other fuel at the location.
(ii) Subsection (2)(l)(i) applies to a location where gas, electricity, heat, coal, fuel oil,
or other fuel is furnished through a single meter for two or more of the following uses:
(A) a commercial use;
(B) an industrial use; or
(C) a residential use.
(3) (a) The following state taxes shall be deposited into the General Fund:
(i) the tax imposed by Subsection (2)(a)(i)(A);
(ii) the tax imposed by Subsection (2)(b)(i);
(iii) the tax imposed by Subsection (2)(c)(i); and
(iv) the tax imposed by Subsection (2)(f)(i)(A)(I).
(b) The following local taxes shall be distributed to a county, city, or town as provided
in this chapter:
(i) the tax imposed by Subsection (2)(a)(ii);
(ii) the tax imposed by Subsection (2)(b)(ii);
(iii) the tax imposed by Subsection (2)(c)(ii); and
(iv) the tax imposed by Subsection (2)(f)(i)(B).
(c) The state tax imposed by Subsection (2)(d) shall be deposited into the General
Fund.
(4) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
2003, the lesser of the following amounts shall be expended as provided in Subsections (4)(b)
through (g):
(i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated:
(A) by a 1/16% tax rate on the transactions described in Subsection (1); and
(B) for the fiscal year; or
(ii) $17,500,000.
(b) (i) For a fiscal year beginning on or after July 1, 2003, 14% of the amount
described in Subsection (4)(a) shall be transferred each year as designated sales and use tax
revenue to the Department of Natural Resources to:
(A) implement the measures described in Subsections 
79-2-303
(3)(a) through (d) to
protect sensitive plant and animal species; or
(B) award grants, up to the amount authorized by the Legislature in an appropriations
act, to political subdivisions of the state to implement the measures described in Subsections
79-2-303
(3)(a) through (d) to protect sensitive plant and animal species.
(ii) Money transferred to the Department of Natural Resources under Subsection
(4)(b)(i) may not be used to assist the United States Fish and Wildlife Service or any other
person to list or attempt to have listed a species as threatened or endangered under the
Endangered Species Act of 1973, 16 U.S.C. Sec. 1531 et seq.
(iii) At the end of each fiscal year:
(A) 50% of any unexpended designated sales and use tax revenue shall lapse to the
Water Resources Conservation and Development Fund created in Section 
73-10-24
;
(B) 25% of any unexpended designated sales and use tax revenue shall lapse to the
Utah Wastewater Loan Program Subaccount created in Section 
73-10c-5
; and
(C) 25% of any unexpended designated sales and use tax revenue shall lapse to the
Drinking Water Loan Program Subaccount created in Section 
73-10c-5
.
(c) For a fiscal year beginning on or after July 1, 2003, 3% of the amount described in
Subsection (4)(a) shall be deposited each year in the Agriculture Resource Development Fund
created in Section 
4-18-106
.
(d) (i) For a fiscal year beginning on or after July 1, 2003, 1% of the amount described
in Subsection (4)(a) shall be transferred each year as designated sales and use tax revenue to
the Division of Water Rights to cover the costs incurred in hiring legal and technical staff for
the adjudication of water rights.
(ii) At the end of each fiscal year:
(A) 50% of any unexpended designated sales and use tax revenue shall lapse to the
Water Resources Conservation and Development Fund created in Section 
73-10-24
;
(B) 25% of any unexpended designated sales and use tax revenue shall lapse to the
Utah Wastewater Loan Program Subaccount created in Section 
73-10c-5
; and
(C) 25% of any unexpended designated sales and use tax revenue shall lapse to the
Drinking Water Loan Program Subaccount created in Section 
73-10c-5
.
(e) (i) For a fiscal year beginning on or after July 1, 2003, 41% of the amount described
in Subsection (4)(a) shall be deposited into the Water Resources Conservation and
Development Fund created in Section 
73-10-24
 for use by the Division of Water Resources.
(ii) In addition to the uses allowed of the Water Resources Conservation and
Development Fund under Section 
73-10-24
, the Water Resources Conservation and
Development Fund may also be used to:
(A) conduct hydrologic and geotechnical investigations by the Division of Water
Resources in a cooperative effort with other state, federal, or local entities, for the purpose of
quantifying surface and ground water resources and describing the hydrologic systems of an
area in sufficient detail so as to enable local and state resource managers to plan for and
accommodate growth in water use without jeopardizing the resource;
(B) fund state required dam safety improvements; and
(C) protect the state's interest in interstate water compact allocations, including the
hiring of technical and legal staff.
(f) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
in Subsection (4)(a) shall be deposited into the Utah Wastewater Loan Program Subaccount
created in Section 
73-10c-5
 for use by the Water Quality Board to fund wastewater projects.
(g) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
in Subsection (4)(a) shall be deposited into the Drinking Water Loan Program Subaccount
created in Section 
73-10c-5
 for use by the Division of Drinking Water to:
(i) provide for the installation and repair of collection, treatment, storage, and
distribution facilities for any public water system, as defined in Section 
19-4-102
;
(ii) develop underground sources of water, including springs and wells; and
(iii) develop surface water sources.
(5) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
2006, the difference between the following amounts shall be expended as provided in this
Subsection (5), if that difference is greater than $1:
(i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated for the
fiscal year by a 1/16% tax rate on the transactions described in Subsection (1); and
(ii) $17,500,000.
(b) (i) The first $500,000 of the difference described in Subsection (5)(a) shall be:
(A) transferred each fiscal year to the Department of Natural Resources as designated
sales and use tax revenue; and
(B) expended by the Department of Natural Resources for watershed rehabilitation or
restoration.
(ii) At the end of each fiscal year, 100% of any unexpended designated sales and use
tax revenue described in Subsection (5)(b)(i) shall lapse to the Water Resources Conservation
and Development Fund created in Section 
73-10-24
.
(c) (i) After making the transfer required by Subsection (5)(b)(i), $150,000 of the
remaining difference described in Subsection (5)(a) shall be:
(A) transferred each fiscal year to the Division of Water Resources as designated sales
and use tax revenue; and
(B) expended by the Division of Water Resources for cloud-seeding projects
authorized by Title 73, Chapter 15, Modification of Weather.
(ii) At the end of each fiscal year, 100% of any unexpended designated sales and use
tax revenue described in Subsection (5)(c)(i) shall lapse to the Water Resources Conservation
and Development Fund created in Section 
73-10-24
.
(d) After making the transfers required by Subsections (5)(b) and (c), 85% of the
remaining difference described in Subsection (5)(a) shall be deposited into the Water
Resources Conservation and Development Fund created in Section 
73-10-24
 for use by the
Division of Water Resources for:
(i) preconstruction costs:
(A) as defined in Subsection 
73-26-103
(6) for projects authorized by Title 73, Chapter
26, Bear River Development Act; and
(B) as defined in Subsection 
73-28-103
(8) for the Lake Powell Pipeline project
authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act;
(ii) the cost of employing a civil engineer to oversee any project authorized by Title 73,
Chapter 26, Bear River Development Act;
(iii) the cost of employing a civil engineer to oversee the Lake Powell Pipeline project
authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act; and
(iv) other uses authorized under Sections 
73-10-24
, 
73-10-25.1
, and 
73-10-30
, and
Subsection (4)(e)(ii) after funding the uses specified in Subsections (5)(d)(i) through (iii).
(e) After making the transfers required by Subsections (5)(b) and (c), 15% of the
remaining difference described in Subsection (5)(a) shall be deposited each year into the Water
Rights Restricted Account created by Section 
73-2-1.6
.
(6) Notwithstanding Subsection (3)(a) and for taxes listed under Subsection (3)(a),
each fiscal year, the commission shall deposit into the Water Infrastructure Restricted Account
created in Section 
73-10g-103
 the amount of revenue generated by a 1/16% tax rate on the
transactions described in Subsection (1) for the fiscal year.
(7) (a) Notwithstanding Subsection (3)(a) and subject to Subsection (7)(b), for a fiscal
year beginning on or after July 1, 2023, the commission shall deposit into the Transportation
Investment Fund of 2005 created by Section 
72-2-124
 a portion of the taxes listed under
Subsection (3)(a) equal to 17% of the revenue collected from the following sales and use taxes:
(i) the tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate;
(ii) the tax imposed by Subsection (2)(b)(i);
(iii) the tax imposed by Subsection (2)(c)(i); and
(iv) the tax imposed by Subsection (2)(f)(i)(A)(I).
(b) (i) As used in this Subsection (7)(b):
(A) "Additional growth revenue" means the amount of relevant revenue collected in
the current fiscal year that exceeds by more than 3% the relevant revenue collected in the
previous fiscal year.
(B) "Combined amount" means the combined total amount of money deposited into the
Cottonwood Canyons fund under Subsections (7)(b)(iii) and (8)(d)(iii) in any single fiscal year.
(C) "Cottonwood Canyons fund" means the Cottonwood Canyons Transportation
Investment Fund created in Subsection 
72-2-124
(10).
(D) "Relevant revenue" means the portion of taxes listed under Subsection (3)(a) that
equals 17% of the revenue collected from taxes described in Subsections (7)(a)(i) through (iv).
(ii) For a fiscal year beginning on or after July 1, 2020, the commission shall annually
reduce the deposit under Subsection (7)(a) into the Transportation Investment Fund of 2005 by
an amount equal to the amount of the deposit under this Subsection (7)(b) to the Cottonwood
Canyons fund in the previous fiscal year plus 25% of additional growth revenue, subject to the
limit in Subsection (7)(b)(iii).
(iii) The commission shall annually deposit the amount described in Subsection
(7)(b)(ii) into the Cottonwood Canyons fund, subject to an annual maximum combined amount
for any single fiscal year of $20,000,000.
(iv) If the amount of relevant revenue declines in a fiscal year compared to the previous
fiscal year, the commission shall decrease the amount of the contribution to the Cottonwood
Canyons fund under this Subsection (7)(b) in the same proportion as the decline in relevant
revenue.
(c) (i) Subject to Subsection (7)(c)(ii), for a fiscal year beginning on or after July 1,
2023, the commission shall annually reduce the deposit into the Transportation Investment
Fund of 2005 under Subsections (7)(a) and (7)(b) by an amount that is equal to 5% of:
(A) the amount of revenue generated in the current fiscal year by the portion of taxes
listed under Subsection (3)(a) that equals 20.68% of the revenue collected from taxes described
in Subsections (7)(a)(i) through (iv);
(B) the amount of revenue generated in the current fiscal year by registration fees
designated under Section 
41-1a-1201
 to be deposited into the Transportation Investment Fund
of 2005; and
(C) revenues transferred by the Division of Finance to the Transportation Investment
Fund of 2005 in accordance with Section 
72-2-106
 in the current fiscal year.
(ii) The amount described in Subsection (7)(c)(i) may not exceed $45,000,000 in a
given fiscal year.
(iii) The commission shall annually deposit the amount described in Subsection
(7)(c)(i) into the Active Transportation Investment Fund created in Subsection 
72-2-124
(11).
(8) (a) Notwithstanding Subsection (3)(a), in addition to the amounts deposited under
Subsection (7), and subject to Subsections (8)(b) and (d)(ii), for a fiscal year beginning on or
after July 1, 2018, the commission shall annually deposit into the Transportation Investment
Fund of 2005 created by Section 
72-2-124
 a portion of the taxes listed under Subsection (3)(a)
in an amount equal to 3.68% of the revenues collected from the following taxes:
(i) the tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate;
(ii) the tax imposed by Subsection (2)(b)(i);
(iii) the tax imposed by Subsection (2)(c)(i); and
(iv) the tax imposed by Subsection (2)(f)(i)(A)(I).
(b) For a fiscal year beginning on or after July 1, 2019, the commission shall annually
reduce the deposit into the Transportation Investment Fund of 2005 under Subsection (8)(a) by
an amount that is equal to 35% of the amount of revenue generated in the current fiscal year by
the portion of the tax imposed on motor and special fuel that is sold, used, or received for sale
or use in this state that exceeds 29.4 cents per gallon.
(c) The commission shall annually deposit the amount described in Subsection (8)(b)
into the Transit Transportation Investment Fund created in Section 
72-2-124
.
(d) (i) As used in this Subsection (8)(d):
(A) "Additional growth revenue" means the amount of relevant revenue collected in
the current fiscal year that exceeds by more than 3% the relevant revenue collected in the
previous fiscal year.
(B) "Combined amount" means the combined total amount of money deposited into the
Cottonwood Canyons fund under Subsections (7)(b)(iii) and (8)(d)(iii) in any single fiscal year.
(C) "Cottonwood Canyons fund" means the Cottonwood Canyons Transportation
Investment Fund created in Subsection 
72-2-124
(10).
(D) "Relevant revenue" means the portion of taxes listed under Subsection (3)(a) that
equals 3.68% of the revenue collected from taxes described in Subsections (8)(a)(i) through
(iv).
(ii) For a fiscal year beginning on or after July 1, 2020, the commission shall annually
reduce the deposit under Subsection (8)(a) into the Transportation Investment Fund of 2005 by
an amount equal to the amount of the deposit under this Subsection (8)(d) to the Cottonwood
Canyons fund in the previous fiscal year plus 25% of additional growth revenue, subject to the
limit in Subsection (8)(d)(iii).
(iii) The commission shall annually deposit the amount described in Subsection
(8)(d)(ii) into the Cottonwood Canyons fund, subject to an annual maximum combined amount
for any single fiscal year of $20,000,000.
(iv) If the amount of relevant revenue declines in a fiscal year compared to the previous
fiscal year, the commission shall decrease the amount of the contribution to the Cottonwood
Canyons fund under this Subsection (8)(d) in the same proportion as the decline in relevant
revenue.
(9) Notwithstanding Subsection (3)(a), for each fiscal year beginning with fiscal year
2009-10, $533,750 shall be deposited into the Qualified Emergency Food Agencies Fund
created by Section 
35A-8-1009
 and expended as provided in Section 
35A-8-1009
.
(10) Notwithstanding Subsection (3)(a), beginning the second fiscal year after the
fiscal year during which the commission receives notice under Section 
63N-2-510
 that
construction on a qualified hotel, as defined in Section 
63N-2-502
, has begun, the commission
shall, for two consecutive fiscal years, annually deposit $1,900,000 of the revenue generated by
the taxes listed under Subsection (3)(a) into the Hotel Impact Mitigation Fund, created in
Section 
63N-2-512
.
(11) (a) The rate specified in this subsection is 0.15%.
(b) Notwithstanding Subsection (3)(a), the commission shall, for a fiscal year
beginning on or after July 1, 2019, annually transfer the amount of revenue collected from the
rate described in Subsection (11)(a) on the transactions that are subject to the sales and use tax
under Subsection (2)(a)(i)(A) into the Medicaid [
Expansion
] 
ACA
 Fund created in Section
26B-1-315
.
(12) Notwithstanding Subsection (3)(a), for each fiscal year beginning with fiscal year
2020-21, the commission shall deposit $200,000 into the General Fund as a dedicated credit
solely for use of the Search and Rescue Financial Assistance Program created in, and expended
in accordance with, Title 53, Chapter 2a, Part 11, Search and Rescue Act.
(13) (a) For each fiscal year beginning with fiscal year 2020-21, the commission shall
annually transfer $1,813,400 of the revenue deposited into the Transportation Investment Fund
of 2005 under Subsections (7) and (8) to the General Fund.
(b) If the total revenue deposited into the Transportation Investment Fund of 2005
under Subsections (7) and (8) is less than $1,813,400 for a fiscal year, the commission shall
transfer the total revenue deposited into the Transportation Investment Fund of 2005 under
Subsections (7) and (8) during the fiscal year to the General Fund.
(14) Notwithstanding Subsection (3)(a), and as described in Section 
63N-3-610
,
beginning the first day of the calendar quarter one year after the sales and use tax boundary for
a housing and transit reinvestment zone is established, the commission, at least annually, shall
transfer an amount equal to 15% of the sales and use tax increment within an established sales
and use tax boundary, as defined in Section 
63N-3-602
, into the Transit Transportation
Investment Fund created in Section 
72-2-124
.
(15) Notwithstanding Subsection (3)(a), the commission shall, for a fiscal year
beginning on or after July 1, 2022, transfer into the Outdoor Adventure Infrastructure
Restricted Account, created in Section 
51-9-902
, a portion of the taxes listed under Subsection
(3)(a) equal to 1% of the revenues collected from the following sales and use taxes:
(a) the tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate;
(b) the tax imposed by Subsection (2)(b)(i);
(c) the tax imposed by Subsection (2)(c)(i); and
(d) the tax imposed by Subsection (2)(f)(i)(A)(I).
Section 17. Section 
59-12-103 (Contingently Effective 01/01/25)
 is amended to read:
59-12-103 (Contingently Effective 01/01/25).
Sales and use tax base -- Rates --
Effective dates -- Use of sales and use tax revenues.
(1) A tax is imposed on the purchaser as provided in this part on the purchase price or
sales price for amounts paid or charged for the following transactions:
(a) retail sales of tangible personal property made within the state;
(b) amounts paid for:
(i) telecommunications service, other than mobile telecommunications service, that
originates and terminates within the boundaries of this state;
(ii) mobile telecommunications service that originates and terminates within the
boundaries of one state only to the extent permitted by the Mobile Telecommunications
Sourcing Act, 4 U.S.C. Sec. 116 et seq.; or
(iii) an ancillary service associated with a:
(A) telecommunications service described in Subsection (1)(b)(i); or
(B) mobile telecommunications service described in Subsection (1)(b)(ii);
(c) sales of the following for commercial use:
(i) gas;
(ii) electricity;
(iii) heat;
(iv) coal;
(v) fuel oil; or
(vi) other fuels;
(d) sales of the following for residential use:
(i) gas;
(ii) electricity;
(iii) heat;
(iv) coal;
(v) fuel oil; or
(vi) other fuels;
(e) sales of prepared food;
(f) except as provided in Section 
59-12-104
, amounts paid or charged as admission or
user fees for theaters, movies, operas, museums, planetariums, shows of any type or nature,
exhibitions, concerts, carnivals, amusement parks, amusement rides, circuses, menageries,
fairs, races, contests, sporting events, dances, boxing matches, wrestling matches, closed circuit
television broadcasts, billiard parlors, pool parlors, bowling lanes, golf, miniature golf, golf
driving ranges, batting cages, skating rinks, ski lifts, ski runs, ski trails, snowmobile trails,
tennis courts, swimming pools, water slides, river runs, jeep tours, boat tours, scenic cruises,
horseback rides, sports activities, or any other amusement, entertainment, recreation,
exhibition, cultural, or athletic activity;
(g) amounts paid or charged for services for repairs or renovations of tangible personal
property, unless Section 
59-12-104
 provides for an exemption from sales and use tax for:
(i) the tangible personal property; and
(ii) parts used in the repairs or renovations of the tangible personal property described
in Subsection (1)(g)(i), regardless of whether:
(A) any parts are actually used in the repairs or renovations of that tangible personal
property; or
(B) the particular parts used in the repairs or renovations of that tangible personal
property are exempt from a tax under this chapter;
(h) except as provided in Subsection 
59-12-104
(7), amounts paid or charged for
assisted cleaning or washing of tangible personal property;
(i) amounts paid or charged for tourist home, hotel, motel, or trailer court
accommodations and services that are regularly rented for less than 30 consecutive days;
(j) amounts paid or charged for laundry or dry cleaning services;
(k) amounts paid or charged for leases or rentals of tangible personal property if within
this state the tangible personal property is:
(i) stored;
(ii) used; or
(iii) otherwise consumed;
(l) amounts paid or charged for tangible personal property if within this state the
tangible personal property is:
(i) stored;
(ii) used; or
(iii) consumed;
(m) amounts paid or charged for a sale:
(i) (A) of a product transferred electronically; or
(B) of a repair or renovation of a product transferred electronically; and
(ii) regardless of whether the sale provides:
(A) a right of permanent use of the product; or
(B) a right to use the product that is less than a permanent use, including a right:
(I) for a definite or specified length of time; and
(II) that terminates upon the occurrence of a condition; and
(n) sales of leased tangible personal property from the lessor to the lessee made in the
state.
(2) (a) Except as provided in Subsections (2)(b) through (f), a state tax and a local tax
are imposed on a transaction described in Subsection (1) equal to the sum of:
(i) a state tax imposed on the transaction at a tax rate equal to the sum of:
(A) 4.70% plus the rate specified in Subsection (11)(a); and
(B) (I) the tax rate the state imposes in accordance with Part 18, Additional State Sales
and Use Tax Act, if the location of the transaction as determined under Sections 
59-12-211
through 
59-12-215
 is in a county in which the state imposes the tax under Part 18, Additional
State Sales and Use Tax Act; and
(II) the tax rate the state imposes in accordance with Part 20, Supplemental State Sales
and Use Tax Act, if the location of the transaction as determined under Sections 
59-12-211
through 
59-12-215
 is in a city, town, or the unincorporated area of a county in which the state
imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
(ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
transaction under this chapter other than this part.
(b) Except as provided in Subsection (2)(f) or (g) and subject to Subsection (2)(l), a
state tax and a local tax are imposed on a transaction described in Subsection (1)(d) equal to
the sum of:
(i) a state tax imposed on the transaction at a tax rate of 2%; and
(ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
transaction under this chapter other than this part.
(c) (i) Except as provided in Subsection (2)(f) or (g), a local tax is imposed on amounts
paid or charged for food and food ingredients equal to the sum of the tax rates a county, city, or
town imposes under this chapter on the amounts paid or charged for food or food ingredients.
(ii) There is no state tax imposed on amounts paid or charged for food and food
ingredients.
(d) Except as provided in Subsection (2)(f) or (g), a state tax is imposed on amounts
paid or charged for fuel to a common carrier that is a railroad for use in a locomotive engine at
a rate of 4.85%.
(e) (i) (A) If a shared vehicle owner certifies to the commission, on a form prescribed
by the commission, that the shared vehicle is an individual-owned shared vehicle, a tax
imposed under Subsection (2)(a)(i)(A) does not apply to car sharing, a car-sharing program, a
shared vehicle driver, or a shared vehicle owner.
(B) A shared vehicle owner's certification described in Subsection (2)(e)(i)(A) is
required once during the time that the shared vehicle owner owns the shared vehicle.
(C) The commission shall verify that a shared vehicle is an individual-owned shared
vehicle by verifying that the applicable Utah taxes imposed under this chapter were paid on the
purchase of the shared vehicle.
(D) The exception under Subsection (2)(e)(i)(A) applies to a certified
individual-owned shared vehicle shared through a car-sharing program even if non-certified
shared vehicles are also available to be shared through the same car-sharing program.
(ii) A tax imposed under Subsection (2)(a)(i)(B) or (2)(a)(ii) applies to car sharing.
(iii) (A) A car-sharing program may rely in good faith on a shared vehicle owner's
representation that the shared vehicle is an individual-owned shared vehicle certified with the
commission as described in Subsection (2)(e)(i).
(B) If a car-sharing program relies in good faith on a shared vehicle owner's
representation that the shared vehicle is an individual-owned shared vehicle certified with the
commission as described in Subsection (2)(e)(i), the car-sharing program is not liable for any
tax, penalty, fee, or other sanction imposed on the shared vehicle owner.
(iv) If all shared vehicles shared through a car-sharing program are certified as
described in Subsection (2)(e)(i)(A) for a tax period, the car-sharing program has no obligation
to collect and remit the tax under Subsection (2)(a)(i)(A) for that tax period.
(v) [
(A)
] A car-sharing program is not required to list or otherwise identify an
individual-owned shared vehicle on a return or an attachment to a return.
(vi) A car-sharing program shall:
(A) retain tax information for each car-sharing program transaction; and
(B) provide the information described in Subsection (2)(e)(vi)(A) to the commission at
the commission's request.
(f) (i) For a bundled transaction that is attributable to food and food ingredients and
tangible personal property other than food and food ingredients, a state tax and a local tax is
imposed on the entire bundled transaction equal to the sum of:
(A) a state tax imposed on the entire bundled transaction equal to the sum of:
(I) the tax rate described in Subsection (2)(a)(i)(A); and
(II) (Aa) the tax rate the state imposes in accordance with Part 18, Additional State
Sales and Use Tax Act, if the location of the transaction as determined under Sections
59-12-211
 through 
59-12-215
 is in a county in which the state imposes the tax under Part 18,
Additional State Sales and Use Tax Act; and
(Bb) the tax rate the state imposes in accordance with Part 20, Supplemental State
Sales and Use Tax Act, if the location of the transaction as determined under Sections
59-12-211
 through 
59-12-215
 is in a city, town, or the unincorporated area of a county in which
the state imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
(B) a local tax imposed on the entire bundled transaction at the sum of the tax rates
described in Subsection (2)(a)(ii).
(ii) If an optional computer software maintenance contract is a bundled transaction that
consists of taxable and nontaxable products that are not separately itemized on an invoice or
similar billing document, the purchase of the optional computer software maintenance contract
is 40% taxable under this chapter and 60% nontaxable under this chapter.
(iii) Subject to Subsection (2)(f)(iv), for a bundled transaction other than a bundled
transaction described in Subsection (2)(f)(i) or (ii):
(A) if the sales price of the bundled transaction is attributable to tangible personal
property, a product, or a service that is subject to taxation under this chapter and tangible
personal property, a product, or service that is not subject to taxation under this chapter, the
entire bundled transaction is subject to taxation under this chapter unless:
(I) the seller is able to identify by reasonable and verifiable standards the tangible
personal property, product, or service that is not subject to taxation under this chapter from the
books and records the seller keeps in the seller's regular course of business; or
(II) state or federal law provides otherwise; or
(B) if the sales price of a bundled transaction is attributable to two or more items of
tangible personal property, products, or services that are subject to taxation under this chapter
at different rates, the entire bundled transaction is subject to taxation under this chapter at the
higher tax rate unless:
(I) the seller is able to identify by reasonable and verifiable standards the tangible
personal property, product, or service that is subject to taxation under this chapter at the lower
tax rate from the books and records the seller keeps in the seller's regular course of business; or
(II) state or federal law provides otherwise.
(iv) For purposes of Subsection (2)(f)(iii), books and records that a seller keeps in the
seller's regular course of business includes books and records the seller keeps in the regular
course of business for nontax purposes.
(g) (i) Except as otherwise provided in this chapter and subject to Subsections (2)(g)(ii)
and (iii), if a transaction consists of the sale, lease, or rental of tangible personal property, a
product, or a service that is subject to taxation under this chapter, and the sale, lease, or rental
of tangible personal property, other property, a product, or a service that is not subject to
taxation under this chapter, the entire transaction is subject to taxation under this chapter unless
the seller, at the time of the transaction:
(A) separately states the portion of the transaction that is not subject to taxation under
this chapter on an invoice, bill of sale, or similar document provided to the purchaser; or
(B) is able to identify by reasonable and verifiable standards, from the books and
records the seller keeps in the seller's regular course of business, the portion of the transaction
that is not subject to taxation under this chapter.
(ii) A purchaser and a seller may correct the taxability of a transaction if:
(A) after the transaction occurs, the purchaser and the seller discover that the portion of
the transaction that is not subject to taxation under this chapter was not separately stated on an
invoice, bill of sale, or similar document provided to the purchaser because of an error or
ignorance of the law; and
(B) the seller is able to identify by reasonable and verifiable standards, from the books
and records the seller keeps in the seller's regular course of business, the portion of the
transaction that is not subject to taxation under this chapter.
(iii) For purposes of Subsections (2)(g)(i) and (ii), books and records that a seller keeps
in the seller's regular course of business includes books and records the seller keeps in the
regular course of business for nontax purposes.
(h) (i) If the sales price of a transaction is attributable to two or more items of tangible
personal property, products, or services that are subject to taxation under this chapter at
different rates, the entire purchase is subject to taxation under this chapter at the higher tax rate
unless the seller, at the time of the transaction:
(A) separately states the items subject to taxation under this chapter at each of the
different rates on an invoice, bill of sale, or similar document provided to the purchaser; or
(B) is able to identify by reasonable and verifiable standards the tangible personal
property, product, or service that is subject to taxation under this chapter at the lower tax rate
from the books and records the seller keeps in the seller's regular course of business.
(ii) For purposes of Subsection (2)(h)(i), books and records that a seller keeps in the
seller's regular course of business includes books and records the seller keeps in the regular
course of business for nontax purposes.
(i) Subject to Subsections (2)(j) and (k), a tax rate repeal or tax rate change for a tax
rate imposed under the following shall take effect on the first day of a calendar quarter:
(i) Subsection (2)(a)(i)(A);
(ii) Subsection (2)(b)(i); or
(iii) Subsection (2)(f)(i)(A)(I).
(j) (i) A tax rate increase takes effect on the first day of the first billing period that
begins on or after the effective date of the tax rate increase if the billing period for the
transaction begins before the effective date of a tax rate increase imposed under:
(A) Subsection (2)(a)(i)(A);
(B) Subsection (2)(b)(i); or
(C) Subsection (2)(f)(i)(A)(I).
(ii) The repeal of a tax or a tax rate decrease applies to a billing period if the billing
statement for the billing period is rendered on or after the effective date of the repeal of the tax
or the tax rate decrease imposed under:
(A) Subsection (2)(a)(i)(A);
(B) Subsection (2)(b)(i); or
(C) Subsection (2)(f)(i)(A)(I).
(k) (i) For a tax rate described in Subsection (2)(k)(ii), if a tax due on a catalogue sale
is computed on the basis of sales and use tax rates published in the catalogue, a tax rate repeal
or change in a tax rate takes effect:
(A) on the first day of a calendar quarter; and
(B) beginning 60 days after the effective date of the tax rate repeal or tax rate change.
(ii) Subsection (2)(k)(i) applies to the tax rates described in the following:
(A) Subsection (2)(a)(i)(A);
(B) Subsection (2)(b)(i); or
(C) Subsection (2)(f)(i)(A)(I).
(iii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
the commission may by rule define the term "catalogue sale."
(l) (i) For a location described in Subsection (2)(l)(ii), the commission shall determine
the taxable status of a sale of gas, electricity, heat, coal, fuel oil, or other fuel based on the
predominant use of the gas, electricity, heat, coal, fuel oil, or other fuel at the location.
(ii) Subsection (2)(l)(i) applies to a location where gas, electricity, heat, coal, fuel oil,
or other fuel is furnished through a single meter for two or more of the following uses:
(A) a commercial use;
(B) an industrial use; or
(C) a residential use.
(3) (a) The following state taxes shall be deposited into the General Fund:
(i) the tax imposed by Subsection (2)(a)(i)(A);
(ii) the tax imposed by Subsection (2)(b)(i); and
(iii) the tax imposed by Subsection (2)(f)(i)(A)(I).
(b) The following local taxes shall be distributed to a county, city, or town as provided
in this chapter:
(i) the tax imposed by Subsection (2)(a)(ii);
(ii) the tax imposed by Subsection (2)(b)(ii);
(iii) the tax imposed by Subsection (2)(c); and
(iv) the tax imposed by Subsection (2)(f)(i)(B).
(c) The state tax imposed by Subsection (2)(d) shall be deposited into the General
Fund.
(4) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
2003, the lesser of the following amounts shall be expended as provided in Subsections (4)(b)
through (g):
(i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated:
(A) by a 1/16% tax rate on the transactions described in Subsection (1); and
(B) for the fiscal year; or
(ii) $17,500,000.
(b) (i) For a fiscal year beginning on or after July 1, 2003, 14% of the amount
described in Subsection (4)(a) shall be transferred each year as designated sales and use tax
revenue to the Department of Natural Resources to:
(A) implement the measures described in Subsections 
79-2-303
(3)(a) through (d) to
protect sensitive plant and animal species; or
(B) award grants, up to the amount authorized by the Legislature in an appropriations
act, to political subdivisions of the state to implement the measures described in Subsections
79-2-303
(3)(a) through (d) to protect sensitive plant and animal species.
(ii) Money transferred to the Department of Natural Resources under Subsection
(4)(b)(i) may not be used to assist the United States Fish and Wildlife Service or any other
person to list or attempt to have listed a species as threatened or endangered under the
Endangered Species Act of 1973, 16 U.S.C. Sec. 1531 et seq.
(iii) At the end of each fiscal year:
(A) 50% of any unexpended designated sales and use tax revenue shall lapse to the
Water Resources Conservation and Development Fund created in Section 
73-10-24
;
(B) 25% of any unexpended designated sales and use tax revenue shall lapse to the
Utah Wastewater Loan Program Subaccount created in Section 
73-10c-5
; and
(C) 25% of any unexpended designated sales and use tax revenue shall lapse to the
Drinking Water Loan Program Subaccount created in Section 
73-10c-5
.
(c) For a fiscal year beginning on or after July 1, 2003, 3% of the amount described in
Subsection (4)(a) shall be deposited each year in the Agriculture Resource Development Fund
created in Section 
4-18-106
.
(d) (i) For a fiscal year beginning on or after July 1, 2003, 1% of the amount described
in Subsection (4)(a) shall be transferred each year as designated sales and use tax revenue to
the Division of Water Rights to cover the costs incurred in hiring legal and technical staff for
the adjudication of water rights.
(ii) At the end of each fiscal year:
(A) 50% of any unexpended designated sales and use tax revenue shall lapse to the
Water Resources Conservation and Development Fund created in Section 
73-10-24
;
(B) 25% of any unexpended designated sales and use tax revenue shall lapse to the
Utah Wastewater Loan Program Subaccount created in Section 
73-10c-5
; and
(C) 25% of any unexpended designated sales and use tax revenue shall lapse to the
Drinking Water Loan Program Subaccount created in Section 
73-10c-5
.
(e) (i) For a fiscal year beginning on or after July 1, 2003, 41% of the amount described
in Subsection (4)(a) shall be deposited into the Water Resources Conservation and
Development Fund created in Section 
73-10-24
 for use by the Division of Water Resources.
(ii) In addition to the uses allowed of the Water Resources Conservation and
Development Fund under Section 
73-10-24
, the Water Resources Conservation and
Development Fund may also be used to:
(A) conduct hydrologic and geotechnical investigations by the Division of Water
Resources in a cooperative effort with other state, federal, or local entities, for the purpose of
quantifying surface and ground water resources and describing the hydrologic systems of an
area in sufficient detail so as to enable local and state resource managers to plan for and
accommodate growth in water use without jeopardizing the resource;
(B) fund state required dam safety improvements; and
(C) protect the state's interest in interstate water compact allocations, including the
hiring of technical and legal staff.
(f) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
in Subsection (4)(a) shall be deposited into the Utah Wastewater Loan Program Subaccount
created in Section 
73-10c-5
 for use by the Water Quality Board to fund wastewater projects.
(g) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
in Subsection (4)(a) shall be deposited into the Drinking Water Loan Program Subaccount
created in Section 
73-10c-5
 for use by the Division of Drinking Water to:
(i) provide for the installation and repair of collection, treatment, storage, and
distribution facilities for any public water system, as defined in Section 
19-4-102
;
(ii) develop underground sources of water, including springs and wells; and
(iii) develop surface water sources.
(5) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
2006, the difference between the following amounts shall be expended as provided in this
Subsection (5), if that difference is greater than $1:
(i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated for the
fiscal year by a 1/16% tax rate on the transactions described in Subsection (1); and
(ii) $17,500,000.
(b) (i) The first $500,000 of the difference described in Subsection (5)(a) shall be:
(A) transferred each fiscal year to the Department of Natural Resources as designated
sales and use tax revenue; and
(B) expended by the Department of Natural Resources for watershed rehabilitation or
restoration.
(ii) At the end of each fiscal year, 100% of any unexpended designated sales and use
tax revenue described in Subsection (5)(b)(i) shall lapse to the Water Resources Conservation
and Development Fund created in Section 
73-10-24
.
(c) (i) After making the transfer required by Subsection (5)(b)(i), $150,000 of the
remaining difference described in Subsection (5)(a) shall be:
(A) transferred each fiscal year to the Division of Water Resources as designated sales
and use tax revenue; and
(B) expended by the Division of Water Resources for cloud-seeding projects
authorized by Title 73, Chapter 15, Modification of Weather.
(ii) At the end of each fiscal year, 100% of any unexpended designated sales and use
tax revenue described in Subsection (5)(c)(i) shall lapse to the Water Resources Conservation
and Development Fund created in Section 
73-10-24
.
(d) After making the transfers required by Subsections (5)(b) and (c), 85% of the
remaining difference described in Subsection (5)(a) shall be deposited into the Water
Resources Conservation and Development Fund created in Section 
73-10-24
 for use by the
Division of Water Resources for:
(i) preconstruction costs:
(A) as defined in Subsection 
73-26-103
(6) for projects authorized by Title 73, Chapter
26, Bear River Development Act; and
(B) as defined in Subsection 
73-28-103
(8) for the Lake Powell Pipeline project
authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act;
(ii) the cost of employing a civil engineer to oversee any project authorized by Title 73,
Chapter 26, Bear River Development Act;
(iii) the cost of employing a civil engineer to oversee the Lake Powell Pipeline project
authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act; and
(iv) other uses authorized under Sections 
73-10-24
, 
73-10-25.1
, and 
73-10-30
, and
Subsection (4)(e)(ii) after funding the uses specified in Subsections (5)(d)(i) through (iii).
(e) After making the transfers required by Subsections (5)(b) and (c), 15% of the
remaining difference described in Subsection (5)(a) shall be deposited each year into the Water
Rights Restricted Account created by Section 
73-2-1.6
.
(6) Notwithstanding Subsection (3)(a) and for taxes listed under Subsection (3)(a),
each fiscal year, the commission shall deposit into the Water Infrastructure Restricted Account
created in Section 
73-10g-103
 the amount of revenue generated by a 1/16% tax rate on the
transactions described in Subsection (1) for the fiscal year.
(7) (a) Notwithstanding Subsection (3)(a) and subject to Subsection (7)(b), for a fiscal
year beginning on or after July 1, 2023, the commission shall deposit into the Transportation
Investment Fund of 2005 created by Section 
72-2-124
 a portion of the taxes listed under
Subsection (3)(a) equal to 17% of the revenue collected from the following sales and use taxes:
(i) the tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate;
(ii) the tax imposed by Subsection (2)(b)(i); and
(iii) the tax imposed by Subsection (2)(f)(i)(A)(I).
(b) (i) As used in this Subsection (7)(b):
(A) "Additional growth revenue" means the amount of relevant revenue collected in
the current fiscal year that exceeds by more than 3% the relevant revenue collected in the
previous fiscal year.
(B) "Combined amount" means the combined total amount of money deposited into the
Cottonwood Canyons fund under Subsections (7)(b)(iii) and (8)(d)(iii) in any single fiscal year.
(C) "Cottonwood Canyons fund" means the Cottonwood Canyons Transportation
Investment Fund created in Subsection 
72-2-124
(10).
(D) "Relevant revenue" means the portion of taxes listed under Subsection (3)(a) that
equals 17% of the revenue collected from taxes described in Subsections (7)(a)(i) through (iii).
(ii) For a fiscal year beginning on or after July 1, 2020, the commission shall annually
reduce the deposit under Subsection (7)(a) into the Transportation Investment Fund of 2005 by
an amount equal to the amount of the deposit under this Subsection (7)(b) to the Cottonwood
Canyons fund in the previous fiscal year plus 25% of additional growth revenue, subject to the
limit in Subsection (7)(b)(iii).
(iii) The commission shall annually deposit the amount described in Subsection
(7)(b)(ii) into the Cottonwood Canyons fund, subject to an annual maximum combined amount
for any single fiscal year of $20,000,000.
(iv) If the amount of relevant revenue declines in a fiscal year compared to the previous
fiscal year, the commission shall decrease the amount of the contribution to the Cottonwood
Canyons fund under this Subsection (7)(b) in the same proportion as the decline in relevant
revenue.
(c) (i) Subject to Subsection (7)(c)(ii), for a fiscal year beginning on or after July 1,
2023, the commission shall annually reduce the deposit into the Transportation Investment
Fund of 2005 under Subsections (7)(a) and (7)(b) by an amount that is equal to 5% of:
(A) the amount of revenue generated in the current fiscal year by the portion of taxes
listed under Subsection (3)(a) that equals 20.68% of the revenue collected from taxes described
in Subsections (7)(a)(i) through (iv);
(B) the amount of revenue generated in the current fiscal year by registration fees
designated under Section 
41-1a-1201
 to be deposited into the Transportation Investment Fund
of 2005; and
(C) revenues transferred by the Division of Finance to the Transportation Investment
Fund of 2005 in accordance with Section 
72-2-106
 in the current fiscal year.
(ii) The amount described in Subsection (7)(c)(i) may not exceed $45,000,000 in a
given fiscal year.
(iii) The commission shall annually deposit the amount described in Subsection
(7)(c)(i) into the Active Transportation Investment Fund created in Subsection 
72-2-124
(11).
(8) (a) Notwithstanding Subsection (3)(a), in addition to the amounts deposited under
Subsection (7), and subject to Subsections (8)(b) and (d)(ii), for a fiscal year beginning on or
after July 1, 2018, the commission shall annually deposit into the Transportation Investment
Fund of 2005 created by Section 
72-2-124
 a portion of the taxes listed under Subsection (3)(a)
in an amount equal to 3.68% of the revenues collected from the following taxes:
(i) the tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate;
(ii) the tax imposed by Subsection (2)(b)(i); and
(iii) the tax imposed by Subsection (2)(f)(i)(A)(I).
(b) For a fiscal year beginning on or after July 1, 2019, the commission shall annually
reduce the deposit into the Transportation Investment Fund of 2005 under Subsection (8)(a) by
an amount that is equal to 35% of the amount of revenue generated in the current fiscal year by
the portion of the tax imposed on motor and special fuel that is sold, used, or received for sale
or use in this state that exceeds 29.4 cents per gallon.
(c) The commission shall annually deposit the amount described in Subsection (8)(b)
into the Transit Transportation Investment Fund created in Section 
72-2-124
.
(d) (i) As used in this Subsection (8)(d):
(A) "Additional growth revenue" means the amount of relevant revenue collected in
the current fiscal year that exceeds by more than 3% the relevant revenue collected in the
previous fiscal year.
(B) "Combined amount" means the combined total amount of money deposited into the
Cottonwood Canyons fund under Subsections (7)(b)(iii) and (8)(d)(iii) in any single fiscal year.
(C) "Cottonwood Canyons fund" means the Cottonwood Canyons Transportation
Investment Fund created in Subsection 
72-2-124
(10).
(D) "Relevant revenue" means the portion of taxes listed under Subsection (3)(a) that
equals 3.68% of the revenue collected from taxes described in Subsections (8)(a)(i) through
(iii).
(ii) For a fiscal year beginning on or after July 1, 2020, the commission shall annually
reduce the deposit under Subsection (8)(a) into the Transportation Investment Fund of 2005 by
an amount equal to the amount of the deposit under this Subsection (8)(d) to the Cottonwood
Canyons fund in the previous fiscal year plus 25% of additional growth revenue, subject to the
limit in Subsection (8)(d)(iii).
(iii) The commission shall annually deposit the amount described in Subsection
(8)(d)(ii) into the Cottonwood Canyons fund, subject to an annual maximum combined amount
for any single fiscal year of $20,000,000.
(iv) If the amount of relevant revenue declines in a fiscal year compared to the previous
fiscal year, the commission shall decrease the amount of the contribution to the Cottonwood
Canyons fund under this Subsection (8)(d) in the same proportion as the decline in relevant
revenue.
(9) Notwithstanding Subsection (3)(a), for each fiscal year beginning with fiscal year
2009-10, $533,750 shall be deposited into the Qualified Emergency Food Agencies Fund
created by Section 
35A-8-1009
 and expended as provided in Section 
35A-8-1009
.
(10) Notwithstanding Subsection (3)(a), beginning the second fiscal year after the
fiscal year during which the commission receives notice under Section 
63N-2-510
 that
construction on a qualified hotel, as defined in Section 
63N-2-502
, has begun, the commission
shall, for two consecutive fiscal years, annually deposit $1,900,000 of the revenue generated by
the taxes listed under Subsection (3)(a) into the Hotel Impact Mitigation Fund, created in
Section 
63N-2-512
.
(11) (a) The rate specified in this subsection is 0.15%.
(b) Notwithstanding Subsection (3)(a), the commission shall, for a fiscal year
beginning on or after July 1, 2019, annually transfer the amount of revenue collected from the
rate described in Subsection (11)(a) on the transactions that are subject to the sales and use tax
under Subsection (2)(a)(i)(A) into the Medicaid [
Expansion
] 
ACA
 Fund created in Section
26B-1-315
.
(12) Notwithstanding Subsection (3)(a), for each fiscal year beginning with fiscal year
2020-21, the commission shall deposit $200,000 into the General Fund as a dedicated credit
solely for use of the Search and Rescue Financial Assistance Program created in, and expended
in accordance with, Title 53, Chapter 2a, Part 11, Search and Rescue Act.
(13) (a) For each fiscal year beginning with fiscal year 2020-21, the commission shall
annually transfer $1,813,400 of the revenue deposited into the Transportation Investment Fund
of 2005 under Subsections (7) and (8) to the General Fund.
(b) If the total revenue deposited into the Transportation Investment Fund of 2005
under Subsections (7) and (8) is less than $1,813,400 for a fiscal year, the commission shall
transfer the total revenue deposited into the Transportation Investment Fund of 2005 under
Subsections (7) and (8) during the fiscal year to the General Fund.
(14) Notwithstanding Subsection (3)(a), and as described in Section 
63N-3-610
,
beginning the first day of the calendar quarter one year after the sales and use tax boundary for
a housing and transit reinvestment zone is established, the commission, at least annually, shall
transfer an amount equal to 15% of the sales and use tax increment within an established sales
and use tax boundary, as defined in Section 
63N-3-602
, into the Transit Transportation
Investment Fund created in Section 
72-2-124
.
(15) Notwithstanding Subsection (3)(a), the commission shall, for a fiscal year
beginning on or after July 1, 2022, transfer into the Outdoor Adventure Infrastructure
Restricted Account, created in Section 
51-9-902
, a portion of the taxes listed under Subsection
(3)(a) equal to 1% of the revenues collected from the following sales and use taxes:
(a) the tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate;
(b) the tax imposed by Subsection (2)(b)(i); and
(c) the tax imposed by Subsection (2)(f)(i)(A)(I).
Section 18. Section 
63A-5b-607
 is amended to read:
63A-5b-607.
Health insurance requirements -- Penalties.
(1) As used in this section:
(a) "Aggregate amount" means the dollar sum of all contracts, change orders, and
modifications for a single project.
(b) "Change order" means the same as that term is defined in Section 
63G-6a-103
.
(c) "Eligible employee" means an employee, as defined in Section 
34A-2-104
, who:
(i) works at least 30 hours per calendar week; and
(ii) meets the employer eligibility waiting period for qualified health insurance
coverage provided by the employer.
(d) "Health benefit plan" means:
(i) the same as that term is defined in Section 
31A-1-301
; or
(ii) an employee welfare benefit plan:
(A) established under the Employee Retirement Income Security Act of 1974, 29
U.S.C. Sec. 1001 et seq.;
(B) for an employer with 100 or more employees; and
(C) in which the employer establishes a self-funded or partially self-funded group
health plan to provide medical care for the employer's employees and dependents of the
employees.
(e) "Qualified health insurance coverage" means the same as that term is defined in
Section 
26B-3-909
.
(f) "Subcontractor" means the same as that term is defined in Section 
63A-5b-605
.
(g) "Third party administrator" or "administrator" means the same as that term is
defined in Section 
31A-1-301
.
(2) Except as provided in Subsection (3), the requirements of this section apply to:
(a) a contractor of a design or construction contract with the division if the prime
contract is in an aggregate amount of $2,000,000 or more; and
(b) a subcontractor of a contractor of a design or construction contract with the division
if the subcontract is in an aggregate amount of $1,000,000 or more.
(3) The requirements of this section do not apply to a contractor or subcontractor if:
(a) the application of this section jeopardizes the division's receipt of federal funds;
(b) the contract is a sole source contract, as defined in Section 
63G-6a-103
; or
(c) the contract is the result of an emergency procurement.
(4) A person who intentionally uses a change order, contract modification, or multiple
contracts to circumvent the requirements of this section is guilty of an infraction.
(5) (a) A contractor that is subject to the requirements of this section shall:
(i) make and maintain an offer of qualified health coverage for the contractor's eligible
employees and the eligible employees' dependents; and
(ii) submit to the director a written statement demonstrating that the contractor is in
compliance with Subsection (5)(a)(i).
(b) A statement under Subsection (5)(a)(ii):
(i) shall be from:
(A) an actuary selected by the contractor or the contractor's insurer;
(B) an underwriter who is responsible for developing the employer group's premium
rates; or
(C) if the contractor provides a health benefit plan described in Subsection (1)(d)(ii),
an actuary or underwriter selected by a third party administrator; and
(ii) may not be created more than one year before the day on which the contractor
submits the statement to the director.
(c) (i) A contractor that provides a health benefit plan described in Subsection (1)(d)(ii)
shall provide the actuary or underwriter selected by an administrator, as described in
Subsection (5)(b)(i)(C), sufficient information to determine whether the contractor's
contribution to the health benefit plan and the actuarial value of the health benefit plan meet the
requirements of qualified health coverage.
(ii) A contractor may not make a change to the contractor's contribution to the health
benefit plan, unless the contractor provides notice to:
(A) the actuary or underwriter selected by an administrator, as described in Subsection
(5)(b)(i)(C), for the actuary or underwriter to update the written statement described in
Subsection (5)(a) in compliance with this section; and
(B) the division.
(6) (a) A contractor that is subject to the requirements of this section shall:
(i) ensure that each contract the contractor enters with a subcontractor that is subject to
the requirements of this section requires the subcontractor to obtain and maintain an offer of
qualified health coverage for the subcontractor's eligible employees and the eligible employees'
dependents during the duration of the subcontract; and
(ii) obtain from a subcontractor referred to in Subsection (6)(a)(i) a written statement
demonstrating that the subcontractor offers qualified health coverage to eligible employees and
eligible employees' dependents.
(b) A statement under Subsection (6)(a)(ii):
(i) shall be from:
(A) an actuary selected by the subcontractor or the subcontractor's insurer;
(B) an underwriter who is responsible for developing the employer group's premium
rates; or
(C) if the subcontractor provides a health benefit plan described in Subsection
(1)(d)(ii), an actuary or underwriter selected by an administrator; and
(ii) may not be created more than one year before the day on which the contractor
obtains the statement from the subcontractor.
(7) (a) (i) A contractor that fails to maintain an offer of qualified health coverage
during the duration of the contract as required in this section is subject to penalties in
accordance with administrative rules made by the division under this section, in accordance
with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
(ii) A contractor is not subject to penalties for the failure of a subcontractor to obtain
and maintain an offer of qualified health coverage as required in this section.
(b) (i) A subcontractor that fails to obtain and maintain an offer of qualified health
coverage during the duration of the subcontract as required in this section is subject to penalties
in accordance with administrative rules made by the division under this section, in accordance
with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
(ii) A subcontractor is not subject to penalties for the failure of a contractor to maintain
an offer of qualified health coverage as required in this section.
(8) The division shall make rules:
(a) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
(b) in coordination with:
(i) the Department of Environmental Quality in accordance with Section 
19-1-206
;
(ii) the Department of Natural Resources in accordance with Section 
79-2-404
;
(iii) a public transit district in accordance with Section 
17B-2a-818.5
;
(iv) the State Capitol Preservation Board in accordance with Section 
63C-9-403
;
(v) the Department of Transportation in accordance with Section 
72-6-107.5
; and
(vi) the Legislature's Administrative Rules Review and General Oversight Committee;
and
(c) that establish:
(i) the requirements and procedures for a contractor and a subcontractor to demonstrate
compliance with this section, including:
(A) a provision that a contractor or subcontractor's compliance with this section is
subject to an audit by the division or the Office of the Legislative Auditor General;
(B) a provision that a contractor that is subject to the requirements of this section
obtain a written statement as provided in Subsection (5); and
(C) a provision that a subcontractor that is subject to the requirements of this section
obtain a written statement as provided in Subsection (6);
(ii) the penalties that may be imposed if a contractor or subcontractor intentionally
violates the provisions of this section, which may include:
(A) a three-month suspension of the contractor or subcontractor from entering into a
future contract with the state upon the first violation;
(B) a six-month suspension of the contractor or subcontractor from entering into a
future contract with the state upon the second violation;
(C) an action for debarment of the contractor or subcontractor in accordance with
Section 
63G-6a-904
 upon the third or subsequent violation; and
(D) monetary penalties which may not exceed 50% of the amount necessary to
purchase qualified health coverage for eligible employees and dependents of eligible
employees of the contractor or subcontractor who were not offered qualified health coverage
during the duration of the contract; and
(iii) a website for the department to post the commercially equivalent benchmark for
the qualified health coverage that is provided by the Department of Health and Human Services
in accordance with Subsection 
26B-3-909
(2).
(9) During the duration of a contract, the division may perform an audit to verify a
contractor or subcontractor's compliance with this section.
(10) (a) Upon the division's request, a contractor or subcontractor shall provide the
division:
(i) a signed actuarial certification that the coverage the contractor or subcontractor
offers is qualified health coverage; or
(ii) all relevant documents and information necessary for the division to determine
compliance with this section.
(b) If a contractor or subcontractor provides the documents and information described
in Subsection (10)(a)(i), the Insurance Department shall assist the division in determining if the
coverage the contractor or subcontractor offers is qualified health coverage.
(11) (a) (i) In addition to the penalties imposed under Subsection (7), a contractor or
subcontractor that intentionally violates the provisions of this section is liable to an eligible
employee for health care costs that would have been covered by qualified health coverage.
(ii) An employer has an affirmative defense to a cause of action under Subsection
(11)(a)(i) if:
(A) the employer relied in good faith on a written statement described in Subsection (5)
or (6); or
(B) the department determines that compliance with this section is not required under
the provisions of Subsection (3).
(b) An eligible employee has a private right of action against the employee's employer
only as provided in this Subsection (11).
(12) The director shall cause money collected from the imposition and collection of a
penalty under this section to be deposited into the Medicaid [
Restricted
] 
Growth Reduction and
Budget Stabilization
 Account created by Section [
26B-1-309
] 
63J-1-315
.
(13) The failure of a contractor or subcontractor to provide qualified health coverage as
required by this section:
(a) may not be the basis for a protest or other action from a prospective bidder, offeror,
or contractor under:
(i) Section 
63G-6a-1602
; or
(ii) any other provision in Title 63G, Chapter 6a, Utah Procurement Code; and
(b) may not be used by the procurement entity or a prospective bidder, offeror, or
contractor as a basis for any action or suit that would suspend, disrupt, or terminate the design
or construction.
(14) An employer's waiting period for an employee to become eligible for qualified
health coverage may not extend beyond the first day of the calendar month following 60 days
after the day on which the employee is hired.
(15) An administrator, including an administrator's actuary or underwriter, who
provides a written statement under Subsection (5)(a) or (c) regarding the qualified health
coverage of a contractor or subcontractor who provides a health benefit plan described in
Subsection (1)(d)(ii):
(a) subject to Subsection (11)(b), is not liable for an error in the written statement,
unless the administrator commits gross negligence in preparing the written statement;
(b) is not liable for any error in the written statement if the administrator relied in good
faith on information from the contractor or subcontractor; and
(c) may require as a condition of providing the written statement that a contractor or
subcontractor hold the administrator harmless for an action arising under this section.
Section 19. Section 
63C-9-403
 is amended to read:
63C-9-403.
Contracting power of executive director -- Health insurance coverage.
(1) As used in this section:
(a) "Aggregate" means the sum of all contracts, change orders, and modifications
related to a single project.
(b) "Change order" means the same as that term is defined in Section 
63G-6a-103
.
(c) "Employee" means, as defined in Section 
34A-2-104
, an "employee," "worker," or
"operative" who:
(i) works at least 30 hours per calendar week; and
(ii) meets employer eligibility waiting requirements for health care insurance, which
may not exceed the first of the calendar month following 60 days after the day on which the
individual is hired.
(d) "Health benefit plan" means:
(i) the same as that term is defined in Section 
31A-1-301
; or
(ii) an employee welfare benefit plan:
(A) established under the Employee Retirement Income Security Act of 1974, 29
U.S.C. Sec. 1001 et seq.;
(B) for an employer with 100 or more employees; and
(C) in which the employer establishes a self-funded or partially self-funded group
health plan to provide medical care for the employer's employees and dependents of the
employees.
(e) "Qualified health coverage" means the same as that term is defined in Section
26B-3-909
.
(f) "Subcontractor" means the same as that term is defined in Section 
63A-5b-605
.
(g) "Third party administrator" or "administrator" means the same as that term is
defined in Section 
31A-1-301
.
(2) Except as provided in Subsection (3), the requirements of this section apply to:
(a) a contractor of a design or construction contract entered into by the board, or on
behalf of the board, on or after July 1, 2009, if the prime contract is in an aggregate amount
equal to or greater than $2,000,000; and
(b) a subcontractor of a contractor of a design or construction contract entered into by
the board, or on behalf of the board, on or after July 1, 2009, if the subcontract is in an
aggregate amount equal to or greater than $1,000,000.
(3) The requirements of this section do not apply to a contractor or subcontractor
described in Subsection (2) if:
(a) the application of this section jeopardizes the receipt of federal funds;
(b) the contract is a sole source contract; or
(c) the contract is an emergency procurement.
(4) A person that intentionally uses change orders, contract modifications, or multiple
contracts to circumvent the requirements of this section is guilty of an infraction.
(5) (a) A contractor subject to the requirements of this section shall demonstrate to the
executive director that the contractor has and will maintain an offer of qualified health
coverage for the contractor's employees and the employees' dependents during the duration of
the contract by submitting to the executive director a written statement that:
(i) the contractor offers qualified health coverage that complies with Section
26B-3-909
;
(ii) is from:
(A) an actuary selected by the contractor or the contractor's insurer;
(B) an underwriter who is responsible for developing the employer group's premium
rates; or
(C) if the contractor provides a health benefit plan described in Subsection (1)(d)(ii),
an actuary or underwriter selected by a third party administrator; and
(iii) was created within one year before the day on which the statement is submitted.
(b) (i) A contractor that provides a health benefit plan described in Subsection (1)(d)(ii)
shall provide the actuary or underwriter selected by the administrator, as described in
Subsection (5)(a)(ii)(C), sufficient information to determine whether the contractor's
contribution to the health benefit plan and the health benefit plan's actuarial value meets the
requirements of qualified health coverage.
(ii) A contractor may not make a change to the contractor's contribution to the health
benefit plan, unless the contractor provides notice to:
(A) the actuary or underwriter selected by the administrator, as described in Subsection
(5)(a)(ii)(C), for the actuary or underwriter to update the written statement described in
Subsection (5)(a) in compliance with this section; and
(B) the executive director.
(c) A contractor that is subject to the requirements of this section shall:
(i) place a requirement in each of the contractor's subcontracts that a subcontractor that
is subject to the requirements of this section shall obtain and maintain an offer of qualified
health coverage for the subcontractor's employees and the employees' dependents during the
duration of the subcontract; and
(ii) obtain from a subcontractor that is subject to the requirements of this section a
written statement that:
(A) the subcontractor offers qualified health coverage that complies with Section
26B-3-909
;
(B) is from an actuary selected by the subcontractor or the subcontractor's insurer, an
underwriter who is responsible for developing the employer group's premium rates, or if the
subcontractor provides a health benefit plan described in Subsection (1)(d)(ii), an actuary or
underwriter selected by an administrator; and
(C) was created within one year before the day on which the contractor obtains the
statement.
(d) (i) (A) A contractor that fails to maintain an offer of qualified health coverage as
described in Subsection (5)(a) during the duration of the contract is subject to penalties in
accordance with administrative rules adopted by the division under Subsection (6).
(B) A contractor is not subject to penalties for the failure of a subcontractor to obtain
and maintain an offer of qualified health coverage described in Subsection (5)(c)(i).
(ii) (A) A subcontractor that fails to obtain and maintain an offer of qualified health
coverage described in Subsection (5)(c)(i) during the duration of the subcontract is subject to
penalties in accordance with administrative rules adopted by the department under Subsection
(6).
(B) A subcontractor is not subject to penalties for the failure of a contractor to maintain
an offer of qualified health coverage described in Subsection (5)(a).
(6) The department shall adopt administrative rules:
(a) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
(b) in coordination with:
(i) the Department of Environmental Quality in accordance with Section 
19-1-206
;
(ii) the Department of Natural Resources in accordance with Section 
79-2-404
;
(iii) the Division of Facilities Construction and Management in accordance with
Section 
63A-5b-607
;
(iv) a public transit district in accordance with Section 
17B-2a-818.5
;
(v) the Department of Transportation in accordance with Section 
72-6-107.5
; and
(vi) the Legislature's Administrative Rules Review and General Oversight Committee;
and
(c) that establish:
(i) the requirements and procedures a contractor and a subcontractor shall follow to
demonstrate compliance with this section, including:
(A) that a contractor or subcontractor's compliance with this section is subject to an
audit by the department or the Office of the Legislative Auditor General;
(B) that a contractor that is subject to the requirements of this section shall obtain a
written statement described in Subsection (5)(a); and
(C) that a subcontractor that is subject to the requirements of this section shall obtain a
written statement described in Subsection (5)(c)(ii);
(ii) the penalties that may be imposed if a contractor or subcontractor intentionally
violates the provisions of this section, which may include:
(A) a three-month suspension of the contractor or subcontractor from entering into
future contracts with the state upon the first violation;
(B) a six-month suspension of the contractor or subcontractor from entering into future
contracts with the state upon the second violation;
(C) an action for debarment of the contractor or subcontractor in accordance with
Section 
63G-6a-904
 upon the third or subsequent violation; and
(D) monetary penalties which may not exceed 50% of the amount necessary to
purchase qualified health coverage for employees and dependents of employees of the
contractor or subcontractor who were not offered qualified health coverage during the duration
of the contract; and
(iii) a website on which the department shall post the commercially equivalent
benchmark, for the qualified health coverage identified in Subsection (1)(e), that is provided by
the Department of Health and Human Services, in accordance with Subsection 
26B-3-909
(2).
(7) (a) (i) In addition to the penalties imposed under Subsection (6)(c)(ii), a contractor
or subcontractor who intentionally violates the provisions of this section is liable to the
employee for health care costs that would have been covered by qualified health coverage.
(ii) An employer has an affirmative defense to a cause of action under Subsection
(7)(a)(i) if:
(A) the employer relied in good faith on a written statement described in Subsection
(5)(a) or (5)(c)(ii); or
(B) the department determines that compliance with this section is not required under
the provisions of Subsection (3).
(b) An employee has a private right of action only against the employee's employer to
enforce the provisions of this Subsection (7).
(8) Any penalties imposed and collected under this section shall be deposited into the
Medicaid [
Restricted
] 
Growth Reduction and Budget Stabilization
 Account created in Section
[
26B-1-309
] 
63J-1-315
.
(9) The failure of a contractor or subcontractor to provide qualified health coverage as
required by this section:
(a) may not be the basis for a protest or other action from a prospective bidder, offeror,
or contractor under:
(i) Section 
63G-6a-1602
; or
(ii) any other provision in Title 63G, Chapter 6a, Utah Procurement Code; and
(b) may not be used by the procurement entity or a prospective bidder, offeror, or
contractor as a basis for any action or suit that would suspend, disrupt, or terminate the design
or construction.
(10) An administrator, including the administrator's actuary or underwriter, who
provides a written statement under Subsection (5)(a) or (c) regarding the qualified health
coverage of a contractor or subcontractor who provides a health benefit plan described in
Subsection (1)(d)(ii):
(a) subject to Subsection (10)(b), is not liable for an error in the written statement,
unless the administrator commits gross negligence in preparing the written statement;
(b) is not liable for any error in the written statement if the administrator relied in good
faith on information from the contractor or subcontractor; and
(c) may require as a condition of providing the written statement that a contractor or
subcontractor hold the administrator harmless for an action arising under this section.
Section 20. Section 
63I-1-226 (Superseded 07/01/24)
 is amended to read:
63I-1-226 (Superseded 07/01/24).
Repeal dates: Titles 26A through 26B.
(1) Subsection 
26B-1-204
(2)(i), related to the Primary Care Grant Committee, is
repealed July 1, 2025.
(2) Section 
26B-1-315
, which creates the Medicaid [
Expansion
] 
ACA
 Fund, is
repealed July 1, [
] 
.
(3) Section 
26B-1-319
, which creates the Neuro-Rehabilitation Fund, is repealed
January 1, 2025.
(4) Section 
26B-1-320
, which creates the Pediatric Neuro-Rehabilitation Fund, is
repealed January 1, 2025.
(5) Subsection 
26B-1-324
(4), the language that states "the Behavioral Health Crisis
Response Commission, as defined in Section 
63C-18-202
," is repealed December 31, 2026.
(6) Subsection 
26B-1-329
(6), related to the Behavioral Health Crisis Response
Commission, is repealed December 31, 2026.
(7) Section 
26B-1-402
, related to the Rare Disease Advisory Council Grant Program, is
repealed July 1, 2026.
(8) Section 
26B-1-409
, which creates the Utah Digital Health Service Commission, is
repealed July 1, 2025.
(9) Section 
26B-1-410
, which creates the Primary Care Grant Committee, is repealed
July 1, 2025.
(10) Section 
26B-1-416
, which creates the Utah Children's Health Insurance Program
Advisory Council, is repealed July 1, 2025.
(11) Section 
26B-1-417
, which creates the Brain Injury Advisory Committee, is
repealed July 1, 2025.
(12) Section 
26B-1-418
, which creates the Neuro-Rehabilitation Fund and Pediatric
Neuro-Rehabilitation Fund Advisory Committee, is repealed January 1, 2025.
(13) Section 
26B-1-422
, which creates the Early Childhood Utah Advisory Council, is
repealed July 1, 2029.
(14) Section 
26B-1-428
, which creates the Youth Electronic Cigarette, Marijuana, and
Other Drug Prevention Program, is repealed July 1, 2025.
(15) Section 
26B-1-430
, which creates the Coordinating Council for Persons with
Disabilities, is repealed July 1, 2027.
(16) Section 
26B-1-431
, which creates the Forensic Mental Health Coordinating
Council, is repealed July 1, 2023.
(17) Section 
26B-1-432
, which creates the Newborn Hearing Screening Committee, is
repealed July 1, 2026.
(18) Section 
26B-1-434
, regarding the Correctional Postnatal and Early Childhood
Advisory Board, is repealed July 1, 2026.
(19) Section 
26B-2-407
, related to drinking water quality in child care centers, is
repealed July 1, 2027.
(20) Subsection 
26B-3-107
(9), which addresses reimbursement for dental hygienists, is
repealed July 1, 2028.
(21) Section 
26B-3-136
, which creates the Children's Health Care Coverage Program,
is repealed July 1, 2025.
(22) Section 
26B-3-137
, related to reimbursement for the National Diabetes Prevention
Program, is repealed June 30, 2027.
(23) Subsection 
26B-3-213
(2), the language that states "and the Behavioral Health
Crisis Response Commission created in Section 
63C-18-202
" is repealed December 31, 2026.
(24) Sections 
26B-3-302
 through 
26B-3-309
, regarding the Drug Utilization Review
Board, are repealed July 1, 2027.
(25) Title 26B, Chapter 3, Part 5, Inpatient Hospital Assessment, is repealed July 1,
2024.
(26) Title 26B, Chapter 3, Part 6, Medicaid Expansion Hospital Assessment, is
repealed July 1, 2024.
(27) Title 26B, Chapter 3, Part 7, Hospital Provider Assessment, is repealed July 1,
2028.
(28) Section 
26B-3-910
, regarding alternative eligibility, is repealed July 1, 2028.
(29) Section 
26B-4-136
, related to the Volunteer Emergency Medical Service
Personnel Health Insurance Program, is repealed July 1, 2027.
(30) Section 
26B-4-710
, related to rural residency training programs, is repealed July 1,
2025.
(31) Subsections 
26B-5-112
(1) and (5), the language that states "In consultation with
the Behavioral Health Crisis Response Commission, established in Section 
63C-18-202
," is
repealed December 31, 2026.
(32) Section 
26B-5-112.5
 is repealed December 31, 2026.
(33) Section 
26B-5-114
, related to the Behavioral Health Receiving Center Grant
Program, is repealed December 31, 2026.
(34) Section 
26B-5-118
, related to collaborative care grant programs, is repealed
December 31, 2024.
(35) Section 
26B-5-120
 is repealed December 31, 2026.
(36) In relation to the Utah Assertive Community Treatment Act, on July 1, 2024:
(a) Subsection 
26B-5-606
(2)(a)(i), the language that states "and" is repealed; and
(b) Subsections 
26B-5-606
(2)(a)(ii), 
26B-5-606
(2)(b), and 
26B-5-606
(2)(c) are
repealed.
(37) In relation to the Behavioral Health Crisis Response Commission, on December
31, 2026:
(a) Subsection 
26B-5-609
(1)(a) is repealed;
(b) Subsection 
26B-5-609
(3)(a), the language that states "With recommendations from
the commission," is repealed;
(c) Subsection 
26B-5-610
(1)(b) is repealed;
(d) Subsection 
26B-5-610
(2)(b), the language that states "and in consultation with the
commission," is repealed; and
(e) Subsection 
26B-5-610
(4), the language that states "In consultation with the
commission," is repealed.
(38) Subsections 
26B-5-611
(1)(a) and (10), in relation to the Utah Substance Use and
Mental Health Advisory Council, are repealed January 1, 2033.
(39) Section 
26B-5-612
, related to integrated behavioral health care grant programs, is
repealed December 31, 2025.
(40) Subsection 
26B-7-119
(5), related to reports to the Legislature on the outcomes of
the Hepatitis C Outreach Pilot Program, is repealed July 1, 2028.
(41) Section 
26B-7-224
, related to reports to the Legislature on violent incidents and
fatalities involving substance abuse, is repealed December 31, 2027.
(42) Title 26B, Chapter 8, Part 5, Utah Health Data Authority, is repealed July 1, 2024.
(43) Section 
26B-8-513
, related to identifying overuse of non-evidence-based health
care, is repealed December 31, 2023.
Section 21. Section 
63I-1-226 (Effective 07/01/24)
 is amended to read:
63I-1-226 (Effective 07/01/24).
Repeal dates: Titles 26A through 26B.
(1) Subsection 
26B-1-204
(2)(i), related to the Primary Care Grant Committee, is
repealed July 1, 2025.
(2) Section 
26B-1-315
, which creates the Medicaid [
Expansion
] 
ACA
 Fund, is
repealed July 1, [
] 
.
(3) Section 
26B-1-319
, which creates the Neuro-Rehabilitation Fund, is repealed
January 1, 2025.
(4) Section 
26B-1-320
, which creates the Pediatric Neuro-Rehabilitation Fund, is
repealed January 1, 2025.
(5) Subsection 
26B-1-324
(4), the language that states "the Behavioral Health Crisis
Response Commission, as defined in Section 
63C-18-202
," is repealed December 31, 2026.
(6) Subsection 
26B-1-329
(6), related to the Behavioral Health Crisis Response
Commission, is repealed December 31, 2026.
(7) Section 
26B-1-402
, related to the Rare Disease Advisory Council Grant Program, is
repealed July 1, 2026.
(8) Section 
26B-1-409
, which creates the Utah Digital Health Service Commission, is
repealed July 1, 2025.
(9) Section 
26B-1-410
, which creates the Primary Care Grant Committee, is repealed
July 1, 2025.
(10) Section 
26B-1-416
, which creates the Utah Children's Health Insurance Program
Advisory Council, is repealed July 1, 2025.
(11) Section 
26B-1-417
, which creates the Brain Injury Advisory Committee, is
repealed July 1, 2025.
(12) Section 
26B-1-418
, which creates the Neuro-Rehabilitation Fund and Pediatric
Neuro-Rehabilitation Fund Advisory Committee, is repealed January 1, 2025.
(13) Section 
26B-1-422
, which creates the Early Childhood Utah Advisory Council, is
repealed July 1, 2029.
(14) Section 
26B-1-428
, which creates the Youth Electronic Cigarette, Marijuana, and
Other Drug Prevention Program, is repealed July 1, 2025.
(15) Section 
26B-1-430
, which creates the Coordinating Council for Persons with
Disabilities, is repealed July 1, 2027.
(16) Section 
26B-1-431
, which creates the Forensic Mental Health Coordinating
Council, is repealed July 1, 2023.
(17) Section 
26B-1-432
, which creates the Newborn Hearing Screening Committee, is
repealed July 1, 2026.
(18) Section 
26B-1-434
, regarding the Correctional Postnatal and Early Childhood
Advisory Board, is repealed July 1, 2026.
(19) Section 
26B-2-407
, related to drinking water quality in child care centers, is
repealed July 1, 2027.
(20) Subsection 
26B-3-107
(9), which addresses reimbursement for dental hygienists, is
repealed July 1, 2028.
(21) Section 
26B-3-136
, which creates the Children's Health Care Coverage Program,
is repealed July 1, 2025.
(22) Section 
26B-3-137
, related to reimbursement for the National Diabetes Prevention
Program, is repealed June 30, 2027.
(23) Subsection 
26B-3-213
(2), the language that states "and the Behavioral Health
Crisis Response Commission created in Section 
63C-18-202
" is repealed December 31, 2026.
(24) Sections 
26B-3-302
 through 
26B-3-309
, regarding the Drug Utilization Review
Board, are repealed July 1, 2027.
(25) Title 26B, Chapter 3, Part 5, Inpatient Hospital Assessment, is repealed July 1,
2024.
(26) Title 26B, Chapter 3, Part 6, Medicaid Expansion Hospital Assessment, is
repealed July 1, 2024.
(27) Title 26B, Chapter 3, Part 7, Hospital Provider Assessment, is repealed July 1,
2028.
(28) Section 
26B-3-910
, regarding alternative eligibility, is repealed July 1, 2028.
(29) Section 
26B-4-710
, related to rural residency training programs, is repealed July 1,
2025.
(30) Subsections 
26B-5-112
(1) and (5), the language that states "In consultation with
the Behavioral Health Crisis Response Commission, established in Section 
63C-18-202
," is
repealed December 31, 2026.
(31) Section 
26B-5-112.5
 is repealed December 31, 2026.
(32) Section 
26B-5-114
, related to the Behavioral Health Receiving Center Grant
Program, is repealed December 31, 2026.
(33) Section 
26B-5-118
, related to collaborative care grant programs, is repealed
December 31, 2024.
(34) Section 
26B-5-120
 is repealed December 31, 2026.
(35) In relation to the Utah Assertive Community Treatment Act, on July 1, 2024:
(a) Subsection 
26B-5-606
(2)(a)(i), the language that states "and" is repealed; and
(b) Subsections 
26B-5-606
(2)(a)(ii), 
26B-5-606
(2)(b), and 
26B-5-606
(2)(c) are
repealed.
(36) In relation to the Behavioral Health Crisis Response Commission, on December
31, 2026:
(a) Subsection 
26B-5-609
(1)(a) is repealed;
(b) Subsection 
26B-5-609
(3)(a), the language that states "With recommendations from
the commission," is repealed;
(c) Subsection 
26B-5-610
(1)(b) is repealed;
(d) Subsection 
26B-5-610
(2)(b), the language that states "and in consultation with the
commission," is repealed; and
(e) Subsection 
26B-5-610
(4), the language that states "In consultation with the
commission," is repealed.
(37) Subsections 
26B-5-611
(1)(a) and (10), in relation to the Utah Substance Use and
Mental Health Advisory Council, are repealed January 1, 2033.
(38) Section 
26B-5-612
, related to integrated behavioral health care grant programs, is
repealed December 31, 2025.
(39) Subsection 
26B-7-119
(5), related to reports to the Legislature on the outcomes of
the Hepatitis C Outreach Pilot Program, is repealed July 1, 2028.
(40) Section 
26B-7-224
, related to reports to the Legislature on violent incidents and
fatalities involving substance abuse, is repealed December 31, 2027.
(41) Title 26B, Chapter 8, Part 5, Utah Health Data Authority, is repealed July 1, 2024.
(42) Section 
26B-8-513
, related to identifying overuse of non-evidence-based health
care, is repealed December 31, 2023.
Section 22. Section 
63I-2-226 (Superseded 07/01/24)
 is amended to read:
63I-2-226 (Superseded 07/01/24).
Repeal dates: Titles 26A through 26B.
(1) Subsection 
26B-1-204
(2)(e), related to the Air Ambulance Committee, is repealed
July 1, 2024.
(2) Section 
26B-1-241
 is repealed July 1, 2024.
(3) Section 
26B-1-302
 is repealed on July 1, 2024.
(4) Section 
26B-1-309
 is repealed on July 1, 2024.
[
(4)
] 
(5)
 Section 
26B-1-313
 is repealed on July 1, 2024.
[
(5)
] 
(6)
 Section 
26B-1-314
 is repealed on July 1, 2024.
[
(6)
] 
(7)
 Section 
26B-1-321
 is repealed on July 1, 2024.
[
(7)
] 
(8)
 Section 
26B-1-405
, related to the Air Ambulance Committee, is repealed on
July 1, 2024.
[
(8)
] 
(9)
 Section 
26B-1-419
, which creates the Utah Health Care Workforce Financial
Assistance Program Advisory Committee, is repealed July 1, 2027.
[
(9)
] 
(10)
 In relation to the Air Ambulance Committee, on July 1, 2024, Subsection
26B-2-231
(1)(a) is amended to read:
"(a) provide the patient or the patient's representative with the following information
before contacting an air medical transport provider:
(i) which health insurers in the state the air medical transport provider contracts with;
(ii) if sufficient data is available, the average charge for air medical transport services
for a patient who is uninsured or out of network; and
(iii) whether the air medical transport provider balance bills a patient for any charge not
paid by the patient's health insurer; and".
[
(10)
] 
(11)
 Section 
26B-3-142
 is repealed July 1, 2024.
[
(11)
] 
(12)
 Subsection 
26B-3-215
(5), related to reporting on coverage for in vitro
fertilization and genetic testing, is repealed July 1, 2030.
[
(12)
] 
(13)
 In relation to the Air Ambulance Committee, on July 1, 2024, Subsection
26B-4-135
(1)(a) is amended to read:
"(a) provide the patient or the patient's representative with the following information
before contacting an air medical transport provider:
(i) which health insurers in the state the air medical transport provider contracts with;
(ii) if sufficient data is available, the average charge for air medical transport services
for a patient who is uninsured or out of network; and
(iii) whether the air medical transport provider balance bills a patient for any charge not
paid by the patient's health insurer; and".
[
(13)
] 
(14)
 Section 
26B-4-702
, related to the Utah Health Care Workforce Financial
Assistance Program, is repealed July 1, 2027.
[
(14)
] 
(15)
 Section 
26B-5-117
, related to early childhood mental health support grant
programs, is repealed January 2, 2025.
[
(15)
] 
(16)
 Subsection 
26B-7-117
(3), related to reports to the Legislature on syringe
exchange and education, is repealed January 1, 2027.
[
(16)
] 
(17)
 Section 
26B-7-120
, relating to sickle cell disease, is repealed on July 1,
2025.
Section 23. Section 
63I-2-226 (Effective 07/01/24)
 is amended to read:
63I-2-226 (Effective 07/01/24).
Repeal dates: Titles 26A through 26B.
(1) Section 
26B-1-241
 is repealed July 1, 2024.
(2) Section 
26B-1-302
 is repealed on July 1, 2024.
(3) Section 
26B-1-309
 is repealed on July 1, 2024.
[
(3)
] 
(4)
 Section 
26B-1-313
 is repealed on July 1, 2024.
[
(4)
] 
(5)
 Section 
26B-1-314
 is repealed on July 1, 2024.
[
(5)
] 
(6)
 Section 
26B-1-321
 is repealed on July 1, 2024.
[
(6)
] 
(7)
 Section 
26B-1-419
, which creates the Utah Health Care Workforce Financial
Assistance Program Advisory Committee, is repealed July 1, 2027.
[
(7)
] 
(8)
 In relation to the Air Ambulance Committee, on July 1, 2024, Subsection
26B-2-231
(1)(a) is amended to read:
"(a) provide the patient or the patient's representative with the following information
before contacting an air medical transport provider:
(i) which health insurers in the state the air medical transport provider contracts with;
(ii) if sufficient data is available, the average charge for air medical transport services
for a patient who is uninsured or out of network; and
(iii) whether the air medical transport provider balance bills a patient for any charge not
paid by the patient's health insurer; and".
[
(8)
] 
(9)
 Section 
26B-3-142
 is repealed July 1, 2024.
[
(9)
] 
(10)
 Subsection 
26B-3-215
(5), related to reporting on coverage for in vitro
fertilization and genetic testing, is repealed July 1, 2030.
[
(10)
] 
(11)
 Section 
26B-4-702
, related to the Utah Health Care Workforce Financial
Assistance Program, is repealed July 1, 2027.
[
(11)
] 
(12)
 Section 
26B-5-117
, related to early childhood mental health support grant
programs, is repealed January 2, 2025.
[
(12)
] 
(13)
 Subsection 
26B-7-117
(3), related to reports to the Legislature on syringe
exchange and education, is repealed January 1, 2027.
[
(13)
] 
(14)
 Section 
26B-7-120
, relating to sickle cell disease, is repealed on July 1,
2025.
Section 24. Section 
63J-1-315
 is amended to read:
63J-1-315.
Medicaid Growth Reduction and Budget Stabilization Account --
Deposits -- Transfers of Medicaid growth savings -- Base budget adjustments --
Appropriations.
(1) As used in this section:
(a) "Department" means the Department of Health and Human Services created in
Section 
26B-1-201
.
(b) "Division" means the Division of Integrated Healthcare created in Section
26B-3-102
.
(c) "General Fund revenue surplus" means a situation where actual General Fund
revenues collected in a completed fiscal year exceed the estimated revenues for the General
Fund for that fiscal year that were adopted by the Executive Appropriations Committee of the
Legislature.
(d) "Medicaid growth savings" means the Medicaid growth target minus Medicaid
program expenditures, if Medicaid program expenditures are less than the Medicaid growth
target.
(e) "Medicaid growth target" means Medicaid program expenditures for the previous
year multiplied by 1.08.
(f) "Medicaid program" is as defined in Section 
26B-3-101
.
(g) "Medicaid program expenditures" means total state revenue expended for the
Medicaid program from the General Fund, including restricted accounts within the General
Fund, during a fiscal year.
(h) "Medicaid program expenditures for the previous year" means total state revenue
expended for the Medicaid program from the General Fund, including restricted accounts
within the General Fund, during the fiscal year immediately preceding a fiscal year for which
Medicaid program expenditures are calculated.
(i) "Operating deficit" means that, at the end of the fiscal year, the unassigned fund
balance in the General Fund is less than zero.
(j) "State revenue" means revenue other than federal revenue.
(k) "State revenue expended for the Medicaid program" includes money transferred or
appropriated to the Medicaid Growth Reduction and Budget Stabilization Account only to the
extent the money is appropriated for the Medicaid program by the Legislature.
(2) There is created within the General Fund a restricted account to be known as the
Medicaid Growth Reduction and Budget Stabilization Account.
(3) (a) The following shall be deposited into the Medicaid Growth Reduction and
Budget Stabilization Account:
(i) deposits described in Subsection (4);
(ii) beginning July 1, 2024, any general funds appropriated to the department for the
state plan for medical assistance or for the Division of Health Care Financing that are not
expended by the department in the fiscal year for which the general funds were appropriated
and which are not otherwise designated as nonlapsing shall lapse into the Medicaid Growth
Reduction and Budget Stabilization Account;
(iii) beginning July 1, 2024, any unused state funds that are associated with the
Medicaid program from the Department of Workforce Services;
(iv) beginning July 1, 2024, any penalties imposed and collected under:
(A) Section 
17B-2a-818.5
;
(B) Section 
19-1-206
;
(C) Section 
63A-5b-607
;
(D) Section 
63C-9-403
;
(E) Section 
72-6-107.5
; or
(F) Section 
79-2-404
; and
(v) at the close of fiscal year 2024, the Division of Finance shall transfer any existing
balance in the Medicaid Restricted Account created in Section 
26B-1-309
 into the Medicaid
Growth Reduction and Budget Stabilization Account.
(b) In addition to the deposits described in Subsection (3)(a), the Legislature may
appropriate money into the Medicaid Growth Reduction and Budget Stabilization Account.
[
(3)
] 
(4)
 (a) (i) Except as provided in Subsection [
(6)
] 
(7)
, if, at the end of a fiscal year,
there is a General Fund revenue surplus, the Division of Finance shall transfer an amount equal
to Medicaid growth savings from the General Fund to the Medicaid Growth Reduction and
Budget Stabilization Account.
(ii) If the amount transferred is reduced to prevent an operating deficit, as provided in
Subsection [
(6)
] 
(7)
, the Legislature shall include, to the extent revenue is available, an amount
equal to the reduction as an appropriation from the General Fund to the account in the base
budget for the second fiscal year following the fiscal year for which the reduction was made.
(b) If, at the end of a fiscal year, there is not a General Fund revenue surplus, the
Legislature shall include, to the extent revenue is available, an amount equal to Medicaid
growth savings as an appropriation from the General Fund to the account in the base budget for
the second fiscal year following the fiscal year for which the reduction was made.
(c) Subsections [
(3)(a)
] 
(4)(a)
 and [
(3)(b)
] 
(4)(b)
 apply only to the fiscal year in which
the department implements the proposal developed under Section 
26B-3-202
 to reduce the
long-term growth in state expenditures for the Medicaid program, and to each fiscal year after
that year.
[
(4)
] 
(5)
 The Division of Finance shall calculate the amount to be transferred under
Subsection [
(3)
] 
(4)
:
(a) before transferring revenue from the General Fund revenue surplus to:
(i) the General Fund Budget Reserve Account under Section 
63J-1-312
;
(ii) the Wildland Fire Suppression Fund created in Section 
65A-8-204
, as described in
Section 
63J-1-314
; and
(iii) the State Disaster Recovery Restricted Account under Section 
63J-1-314
;
(b) before earmarking revenue from the General Fund revenue surplus to the Industrial
Assistance Account under Section 
63N-3-106
; and
(c) before making any other year-end contingency appropriations, year-end set-asides,
or other year-end transfers required by law.
[
(5)
] 
(6)
 (a) If, at the close of any fiscal year, there appears to be insufficient money to
pay additional debt service for any bonded debt authorized by the Legislature, the Division of
Finance may hold back from any General Fund revenue surplus money sufficient to pay the
additional debt service requirements resulting from issuance of bonded debt that was
authorized by the Legislature.
(b) The Division of Finance may not spend the hold back amount for debt service
under Subsection [
(5)(a)
] 
(6)(a)
 unless and until it is appropriated by the Legislature.
(c) If, after calculating the amount for transfer under Subsection [
(3)
] 
(4)
, the
remaining General Fund revenue surplus is insufficient to cover the hold back for debt service
required by Subsection [
(5)(a)
] 
(6)(a)
, the Division of Finance shall reduce the transfer to the
Medicaid Growth Reduction and Budget Stabilization Account by the amount necessary to
cover the debt service hold back.
(d) Notwithstanding Subsections [
(3)
] 
(4)
 and [
(4)
] 
(5)
, the Division of Finance shall
hold back the General Fund balance for debt service authorized by this Subsection [
(5)
] 
(6)
before making any transfers to the Medicaid Growth Reduction and Budget Stabilization
Account or any other designation or allocation of General Fund revenue surplus.
[
(6)
] 
(7)
 Notwithstanding Subsections [
(3)
] 
(4)
 and [
(4)
] 
(5)
, if, at the end of a fiscal
year, the Division of Finance determines that an operating deficit exists and that holding back
earmarks to the Industrial Assistance Account under Section 
63N-3-106
, transfers to the 
Wildland Fire Suppression Fund and State Disaster Recovery Restricted Account under Section
63J-1-314
, transfers to the General Fund Budget Reserve Account under Section 
63J-1-312
, or
earmarks and transfers to more than one of those accounts, in that order, does not eliminate the
operating deficit, the Division of Finance may reduce the transfer to the Medicaid Growth
Reduction and Budget Stabilization Account by the amount necessary to eliminate the
operating deficit.
[
(7)
] 
(8)
 The Legislature may appropriate money from the Medicaid Growth Reduction
and Budget Stabilization Account only:
(a) for the Medicaid program; and
[
(a)
] 
(b) (i)
 if Medicaid program expenditures for the fiscal year for which the
appropriation is made are estimated to be 108% or more of Medicaid program expenditures for
the previous year; [
and
] 
or
(ii) if the amount of the appropriation is equal to or less than the balance in the
Medicaid Growth Reduction and Budget Stabilization Account that comprises deposits
described in Subsections (3)(a)(ii) through (v) and appropriations described in Subsection
(3)(b).
[
(b) for the Medicaid program.
]
[
(8)
] 
(9)
 The Division of Finance shall deposit interest or other earnings derived from
investment of Medicaid Growth Reduction and Budget Stabilization Account money into the
General Fund.
Section 25. Section 
72-6-107.5
 is amended to read:
72-6-107.5.
Construction of improvements of highway -- Contracts -- Health
insurance coverage.
(1) As used in this section:
(a) "Aggregate" means the sum of all contracts, change orders, and modifications
related to a single project.
(b) "Change order" means the same as that term is defined in Section 
63G-6a-103
.
(c) "Employee" means, as defined in Section 
34A-2-104
, an "employee," "worker," or
"operative" who:
(i) works at least 30 hours per calendar week; and
(ii) meets employer eligibility waiting requirements for health care insurance, which
may not exceed the first day of the calendar month following 60 days after the day on which
the individual is hired.
(d) "Health benefit plan" means:
(i) the same as that term is defined in Section 
31A-1-301
; or
(ii) an employee welfare benefit plan:
(A) established under the Employee Retirement Income Security Act of 1974, 29
U.S.C. Sec. 1001 et seq.;
(B) for an employer with 100 or more employees; and
(C) in which the employer establishes a self-funded or partially self-funded group
health plan to provide medical care for the employer's employees and dependents of the
employees.
(e) "Qualified health coverage" means the same as that term is defined in Section
26B-3-909
.
(f) "Subcontractor" means the same as that term is defined in Section 
63A-5b-605
.
(g) "Third party administrator" or "administrator" means the same as that term is
defined in Section 
31A-1-301
.
(2) Except as provided in Subsection (3), the requirements of this section apply to:
(a) a contractor of a design or construction contract entered into by the department on
or after July 1, 2009, if the prime contract is in an aggregate amount equal to or greater than
$2,000,000; and
(b) a subcontractor of a contractor of a design or construction contract entered into by
the department on or after July 1, 2009, if the subcontract is in an aggregate amount equal to or
greater than $1,000,000.
(3) The requirements of this section do not apply to a contractor or subcontractor
described in Subsection (2) if:
(a) the application of this section jeopardizes the receipt of federal funds;
(b) the contract is a sole source contract; or
(c) the contract is an emergency procurement.
(4) A person that intentionally uses change orders, contract modifications, or multiple
contracts to circumvent the requirements of this section is guilty of an infraction.
(5) (a) A contractor subject to the requirements of this section shall demonstrate to the
department that the contractor has and will maintain an offer of qualified health coverage for
the contractor's employees and the employees' dependents during the duration of the contract
by submitting to the department a written statement that:
(i) the contractor offers qualified health coverage that complies with Section
26B-3-909
;
(ii) is from:
(A) an actuary selected by the contractor or the contractor's insurer;
(B) an underwriter who is responsible for developing the employer group's premium
rates; or
(C) if the contractor provides a health benefit plan described in Subsection (1)(d)(ii),
an actuary or underwriter selected by a third party administrator; and
(iii) was created within one year before the day on which the statement is submitted.
(b) (i) A contractor that provides a health benefit plan described in Subsection (1)(d)(ii)
shall provide the actuary or underwriter selected by an administrator, as described in
Subsection (5)(a)(ii)(C), sufficient information to determine whether the contractor's
contribution to the health benefit plan and the actuarial value of the health benefit plan meet the
requirements of qualified health coverage.
(ii) A contractor may not make a change to the contractor's contribution to the health
benefit plan, unless the contractor provides notice to:
(A) the actuary or underwriter selected by an administrator, as described in Subsection
(5)(a)(ii)(C), for the actuary or underwriter to update the written statement described in
Subsection (5)(a) in compliance with this section; and
(B) the department.
(c) A contractor that is subject to the requirements of this section shall:
(i) place a requirement in each of the contractor's subcontracts that a subcontractor that
is subject to the requirements of this section shall obtain and maintain an offer of qualified
health coverage for the subcontractor's employees and the employees' dependents during the
duration of the subcontract; and
(ii) obtain from a subcontractor that is subject to the requirements of this section a
written statement that:
(A) the subcontractor offers qualified health coverage that complies with Section
26B-3-909
;
(B) is from an actuary selected by the subcontractor or the subcontractor's insurer, an
underwriter who is responsible for developing the employer group's premium rates, or if the
subcontractor provides a health benefit plan described in Subsection (1)(d)(ii), an actuary or
underwriter selected by an administrator; and
(C) was created within one year before the day on which the contractor obtains the
statement.
(d) (i) (A) A contractor that fails to maintain an offer of qualified health coverage
described in Subsection (5)(a) during the duration of the contract is subject to penalties in
accordance with administrative rules adopted by the department under Subsection (6).
(B) A contractor is not subject to penalties for the failure of a subcontractor to obtain
and maintain an offer of qualified health coverage described in Subsection (5)(c)(i).
(ii) (A) A subcontractor that fails to obtain and maintain an offer of qualified health
coverage described in Subsection (5)(c) during the duration of the subcontract is subject to
penalties in accordance with administrative rules adopted by the department under Subsection
(6).
(B) A subcontractor is not subject to penalties for the failure of a contractor to maintain
an offer of qualified health coverage described in Subsection (5)(a).
(6) The department shall adopt administrative rules:
(a) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
(b) in coordination with:
(i) the Department of Environmental Quality in accordance with Section 
19-1-206
;
(ii) the Department of Natural Resources in accordance with Section 
79-2-404
;
(iii) the Division of Facilities Construction and Management in accordance with
Section 
63A-5b-607
;
(iv) the State Capitol Preservation Board in accordance with Section 
63C-9-403
;
(v) a public transit district in accordance with Section 
17B-2a-818.5
; and
(vi) the Legislature's Administrative Rules Review and General Oversight Committee;
and
(c) that establish:
(i) the requirements and procedures a contractor and a subcontractor shall follow to
demonstrate compliance with this section, including:
(A) that a contractor or subcontractor's compliance with this section is subject to an
audit by the department or the Office of the Legislative Auditor General;
(B) that a contractor that is subject to the requirements of this section shall obtain a
written statement described in Subsection (5)(a); and
(C) that a subcontractor that is subject to the requirements of this section shall obtain a
written statement described in Subsection (5)(c)(ii);
(ii) the penalties that may be imposed if a contractor or subcontractor intentionally
violates the provisions of this section, which may include:
(A) a three-month suspension of the contractor or subcontractor from entering into
future contracts with the state upon the first violation;
(B) a six-month suspension of the contractor or subcontractor from entering into future
contracts with the state upon the second violation;
(C) an action for debarment of the contractor or subcontractor in accordance with
Section 
63G-6a-904
 upon the third or subsequent violation; and
(D) monetary penalties which may not exceed 50% of the amount necessary to
purchase qualified health coverage for an employee and a dependent of the employee of the
contractor or subcontractor who was not offered qualified health coverage during the duration
of the contract; and
(iii) a website on which the department shall post the commercially equivalent
benchmark, for the qualified health coverage identified in Subsection (1)(e), that is provided by
the Department of Health and Human Services, in accordance with Subsection 
26B-3-909
(2).
(7) (a) (i) In addition to the penalties imposed under Subsection (6)(c)(ii), a contractor
or subcontractor who intentionally violates the provisions of this section is liable to the
employee for health care costs that would have been covered by qualified health coverage.
(ii) An employer has an affirmative defense to a cause of action under Subsection
(7)(a)(i) if:
(A) the employer relied in good faith on a written statement described in Subsection
(5)(a) or (5)(c)(ii); or
(B) the department determines that compliance with this section is not required under
the provisions of Subsection (3).
(b) An employee has a private right of action only against the employee's employer to
enforce the provisions of this Subsection (7).
(8) Any penalties imposed and collected under this section shall be deposited into the
Medicaid [
Restricted
] 
Growth Reduction and Budget Stabilization
 Account created in Section
[
26B-1-309
] 
63J-1-315
.
(9) The failure of a contractor or subcontractor to provide qualified health coverage as
required by this section:
(a) may not be the basis for a protest or other action from a prospective bidder, offeror,
or contractor under:
(i) Section 
63G-6a-1602
; or
(ii) any other provision in Title 63G, Chapter 6a, Utah Procurement Code; and
(b) may not be used by the procurement entity or a prospective bidder, offeror, or
contractor as a basis for any action or suit that would suspend, disrupt, or terminate the design
or construction.
(10) An administrator, including an administrator's actuary or underwriter, who
provides a written statement under Subsection (5)(a) or (c) regarding the qualified health
coverage of a contractor or subcontractor who provides a health benefit plan described in
Subsection (1)(d)(ii):
(a) subject to Subsection (10)(b), is not liable for an error in the written statement,
unless the administrator commits gross negligence in preparing the written statement;
(b) is not liable for any error in the written statement if the administrator relied in good
faith on information from the contractor or subcontractor; and
(c) may require as a condition of providing the written statement that a contractor or
subcontractor hold the administrator harmless for an action arising under this section.
Section 26. Section 
79-2-404
 is amended to read:
79-2-404.
Contracting powers of department -- Health insurance coverage.
(1) As used in this section:
(a) "Aggregate" means the sum of all contracts, change orders, and modifications
related to a single project.
(b) "Change order" means the same as that term is defined in Section 
63G-6a-103
.
(c) "Employee" means, as defined in Section 
34A-2-104
, an "employee," "worker," or
"operative" who:
(i) works at least 30 hours per calendar week; and
(ii) meets employer eligibility waiting requirements for health care insurance, which
may not exceed the first day of the calendar month following 60 days after the day on which
the individual is hired.
(d) "Health benefit plan" means:
(i) the same as that term is defined in Section 
31A-1-301
; or
(ii) an employee welfare benefit plan:
(A) established under the Employee Retirement Income Security Act of 1974, 29
U.S.C. Sec. 1001 et seq.;
(B) for an employer with 100 or more employees; and
(C) in which the employer establishes a self-funded or partially self-funded group
health plan to provide medical care for the employer's employees and dependents of the
employees.
(e) "Qualified health coverage" means the same as that term is defined in Section
26B-3-909
.
(f) "Subcontractor" means the same as that term is defined in Section 
63A-5b-605
.
(g) "Third party administrator" or "administrator" means the same as that term is
defined in Section 
31A-1-301
.
(2) Except as provided in Subsection (3), the requirements of this section apply to:
(a) a contractor of a design or construction contract entered into by, or delegated to, the
department or a division, board, or council of the department on or after July 1, 2009, if the
prime contract is in an aggregate amount equal to or greater than $2,000,000; and
(b) a subcontractor of a contractor of a design or construction contract entered into by,
or delegated to, the department or a division, board, or council of the department on or after
July 1, 2009, if the subcontract is in an aggregate amount equal to or greater than $1,000,000.
(3) This section does not apply to contracts entered into by the department or a
division, board, or council of the department if:
(a) the application of this section jeopardizes the receipt of federal funds;
(b) the contract or agreement is between:
(i) the department or a division, board, or council of the department; and
(ii) (A) another agency of the state;
(B) the federal government;
(C) another state;
(D) an interstate agency;
(E) a political subdivision of this state; or
(F) a political subdivision of another state; or
(c) the contract or agreement is:
(i) for the purpose of disbursing grants or loans authorized by statute;
(ii) a sole source contract; or
(iii) an emergency procurement.
(4) A person that intentionally uses change orders, contract modifications, or multiple
contracts to circumvent the requirements of this section is guilty of an infraction.
(5) (a) A contractor subject to the requirements of this section shall demonstrate to the
department that the contractor has and will maintain an offer of qualified health coverage for
the contractor's employees and the employees' dependents during the duration of the contract
by submitting to the department a written statement that:
(i) the contractor offers qualified health coverage that complies with Section
26B-3-909
;
(ii) is from:
(A) an actuary selected by the contractor or the contractor's insurer;
(B) an underwriter who is responsible for developing the employer group's premium
rates; or
(C) if the contractor provides a health benefit plan described in Subsection (1)(d)(ii),
an actuary or underwriter selected by a third party administrator; and
(iii) was created within one year before the day on which the statement is submitted.
(b) (i) A contractor that provides a health benefit plan described in Subsection (1)(d)(ii)
shall provide the actuary or underwriter selected by an administrator, as described in
Subsection (5)(a)(ii)(C), sufficient information to determine whether the contractor's
contribution to the health benefit plan and the actuarial value of the health benefit plan meet the
requirements of qualified health coverage.
(ii) A contractor may not make a change to the contractor's contribution to the health
benefit plan, unless the contractor provides notice to:
(A) the actuary or underwriter selected by an administrator, as described in Subsection
(5)(a)(ii)(C), for the actuary or underwriter to update the written statement described in
Subsection (5)(a) in compliance with this section; and
(B) the department.
(c) A contractor that is subject to the requirements of this section shall:
(i) place a requirement in each of the contractor's subcontracts that a subcontractor that
is subject to the requirements of this section shall obtain and maintain an offer of qualified
health coverage for the subcontractor's employees and the employees' dependents during the
duration of the subcontract; and
(ii) obtain from a subcontractor that is subject to the requirements of this section a
written statement that:
(A) the subcontractor offers qualified health coverage that complies with Section
26B-3-909
;
(B) is from an actuary selected by the subcontractor or the subcontractor's insurer, an
underwriter who is responsible for developing the employer group's premium rates, or if the
subcontractor provides a health benefit plan described in Subsection (1)(d)(ii), an actuary or
underwriter selected by an administrator; and
(C) was created within one year before the day on which the contractor obtains the
statement.
(d) (i) (A) A contractor that fails to maintain an offer of qualified health coverage
described in Subsection (5)(a) during the duration of the contract is subject to penalties in
accordance with administrative rules adopted by the department under Subsection (6).
(B) A contractor is not subject to penalties for the failure of a subcontractor to obtain
and maintain an offer of qualified health coverage described in Subsection (5)(c)(i).
(ii) (A) A subcontractor that fails to obtain and maintain an offer of qualified health
coverage described in Subsection (5)(c) during the duration of the subcontract is subject to
penalties in accordance with administrative rules adopted by the department under Subsection
(6).
(B) A subcontractor is not subject to penalties for the failure of a contractor to maintain
an offer of qualified health coverage described in Subsection (5)(a).
(6) The department shall adopt administrative rules:
(a) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
(b) in coordination with:
(i) the Department of Environmental Quality in accordance with Section 
19-1-206
;
(ii) a public transit district in accordance with Section 
17B-2a-818.5
;
(iii) the Division of Facilities Construction and Management in accordance with
Section 
63A-5b-607
;
(iv) the State Capitol Preservation Board in accordance with Section 
63C-9-403
;
(v) the Department of Transportation in accordance with Section 
72-6-107.5
; and
(vi) the Legislature's Administrative Rules Review and General Oversight Committee;
and
(c) that establish:
(i) the requirements and procedures a contractor and a subcontractor shall follow to
demonstrate compliance with this section, including:
(A) that a contractor or subcontractor's compliance with this section is subject to an
audit by the department or the Office of the Legislative Auditor General;
(B) that a contractor that is subject to the requirements of this section shall obtain a
written statement described in Subsection (5)(a); and
(C) that a subcontractor that is subject to the requirements of this section shall obtain a
written statement described in Subsection (5)(c)(ii);
(ii) the penalties that may be imposed if a contractor or subcontractor intentionally
violates the provisions of this section, which may include:
(A) a three-month suspension of the contractor or subcontractor from entering into
future contracts with the state upon the first violation;
(B) a six-month suspension of the contractor or subcontractor from entering into future
contracts with the state upon the second violation;
(C) an action for debarment of the contractor or subcontractor in accordance with
Section 
63G-6a-904
 upon the third or subsequent violation; and
(D) monetary penalties which may not exceed 50% of the amount necessary to
purchase qualified health coverage for an employee and a dependent of an employee of the
contractor or subcontractor who was not offered qualified health coverage during the duration
of the contract; and
(iii) a website on which the department shall post the commercially equivalent
benchmark, for the qualified health coverage identified in Subsection (1)(e), provided by the
Department of Health and Human Services, in accordance with Subsection 
26B-3-909
(2).
(7) (a) (i) In addition to the penalties imposed under Subsection (6)(c)(ii), a contractor
or subcontractor who intentionally violates the provisions of this section is liable to the
employee for health care costs that would have been covered by qualified health coverage.
(ii) An employer has an affirmative defense to a cause of action under Subsection
(7)(a)(i) if:
(A) the employer relied in good faith on a written statement described in Subsection
(5)(a) or (5)(c)(ii); or
(B) the department determines that compliance with this section is not required under
the provisions of Subsection (3).
(b) An employee has a private right of action only against the employee's employer to
enforce the provisions of this Subsection (7).
(8) Any penalties imposed and collected under this section shall be deposited into the
Medicaid [
Restricted
] 
Growth Reduction and Budget Stabilization
 Account created in Section
[
26B-1-309
] 
63J-1-315
.
(9) The failure of a contractor or subcontractor to provide qualified health coverage as
required by this section:
(a) may not be the basis for a protest or other action from a prospective bidder, offeror,
or contractor under:
(i) Section 
63G-6a-1602
; or
(ii) any other provision in Title 63G, Chapter 6a, Utah Procurement Code; and
(b) may not be used by the procurement entity or a prospective bidder, offeror, or
contractor as a basis for any action or suit that would suspend, disrupt, or terminate the design
or construction.
(10) An administrator, including an administrator's actuary or underwriter, who
provides a written statement under Subsection (5)(a) or (c) regarding the qualified health
coverage of a contractor or subcontractor who provides a health benefit plan described in
Subsection (1)(d)(ii):
(a) subject to Subsection (10)(b), is not liable for an error in the written statement,
unless the administrator commits gross negligence in preparing the written statement;
(b) is not liable for any error in the written statement if the administrator relied in good
faith on information from the contractor or subcontractor; and
(c) may require as a condition of providing the written statement that a contractor or
subcontractor hold the administrator harmless for an action arising under this section.
Section 27. 
Appropriation.
The following sums of money are appropriated for the fiscal year beginning July 1,
2023, and ending June 30, 2024. These are additions to amounts previously appropriated for
fiscal year 2024. The Legislature authorizes the State Division of Finance to transfer the
following amounts between the following funds or accounts as indicated. Expenditures and
outlays from the funds or accounts to which the money is transferred must be authorized by an
appropriation.
ITEM 1
To General Fund Restricted -- Medicaid Growth Reduction and Budget Stabilization Account
From General Fund Restricted -- Medicaid Restricted Account, One-time
23,700,000
Schedule of Programs:
General Fund Restricted -- Medicaid Growth Reduction and Budget
Stabilization Account 23,700,000
Section 28. 
Effective date.
(1) Except as provided in Subsection (2), this bill takes effect on May 1, 2024.
(2) (a) The actions affecting the following sections take effect on July 1, 2024:
(i) Section 
17B-2a-818.5
;
(ii) Section 
19-1-206
;
(iii) Section 
63A-5b-607
;
(iv) Section 
63C-9-403
;
(v) Section 
63I-1-226
 (Effective 07/01/2024);
(vi) Section 
63I-2-226
 (Effective 07/01/2024);
(vii) Section 
72-6-107.5
; and
(viii) Section 
79-2-404
.
(b) The actions affecting Section 
59-12-103
 (Contingently Effective 01/01/25)
contingently take effect on January 1, 2025.