Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 344 (2024GS)

Sponsor

Rep. Brammer, B.

Final action

Governor Signed 3/13/2024

Outcome

Became law — signed by Gov. Spencer J. Cox

Summary

What it does

• This bill:
• disbands the Judicial Rules Review Committee;
• moves the organizational statute for the Administrative Rules Review and General Oversight Committee to Title 36, Legislature;
• changes the name of the Administrative Rules Review and General Oversight Committee to the Rules Review and General Oversight Committee;
• places the duties and oversight of the Judicial Rules Review Committee within the duties and oversight of the Rules Review and General Oversight Committee;
• amends provisions requiring production of documents and information;
• reorganizes statutes to accommodate the consolidation of committees;
• clarifies existing statutory language; and
• makes corresponding changes and updates cross references.

Every vote on this bill

Bill text

JUDICIAL RULES REVIEW AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Brady Brammer
Senate Sponsor: 
 Todd D. Weiler
LONG TITLE
General Description:
This bill modifies the duties and structure of the Judicial Rules Review Committee and
the Administrative Rules Review and General Oversight Committee.
Highlighted Provisions:
This bill:
▸ disbands the Judicial Rules Review Committee;
▸ moves the organizational statute for the Administrative Rules Review and General
Oversight Committee to Title 36, Legislature;
▸ changes the name of the Administrative Rules Review and General Oversight
Committee to the Rules Review and General Oversight Committee;
▸ places the duties and oversight of the Judicial Rules Review Committee within the
duties and oversight of the Rules Review and General Oversight Committee;
▸ amends provisions requiring production of documents and information;
▸ reorganizes statutes to accommodate the consolidation of committees;
▸ clarifies existing statutory language; and
▸ makes corresponding changes and updates cross references.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
19-1-201
, as last amended by Laws of Utah 2023, Chapter 272
19-1-206
, as last amended by Laws of Utah 2023, Chapter 327
19-1-207
, as last amended by Laws of Utah 2022, Chapter 443
19-5-104.5
, as last amended by Laws of Utah 2022, Chapter 443
26B-1-207
, as last amended by Laws of Utah 2023, Chapter 272
26B-1-219
, as renumbered and amended by Laws of Utah 2023, Chapter 305
26B-3-129
, as renumbered and amended by Laws of Utah 2023, Chapter 306
40-6-22
, as last amended by Laws of Utah 2022, Chapter 443
53B-27-303
, as last amended by Laws of Utah 2022, Chapter 443
54-17-701
, as last amended by Laws of Utah 2022, Chapter 443
63A-5b-607
, as last amended by Laws of Utah 2023, Chapter 329
63A-13-202
, as last amended by Laws of Utah 2022, Chapter 443
63A-13-305
, as last amended by Laws of Utah 2022, Chapter 443
63C-9-403
, as last amended by Laws of Utah 2023, Chapter 329
63G-3-301
, as last amended by Laws of Utah 2022, Chapter 443
63G-3-304
, as last amended by Laws of Utah 2022, Chapter 443
63G-3-402
, as last amended by Laws of Utah 2022, Chapter 443
63G-3-403
, as last amended by Laws of Utah 2022, Chapter 443
63G-3-502
, as last amended by Laws of Utah 2022, Chapter 443
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
ENACTS:
36-35-101
, Utah Code Annotated 1953
63G-3-503
, Utah Code Annotated 1953
RENUMBERS AND AMENDS:
36-12-24
, (Renumbered from 36-32-207, as enacted by Laws of Utah 2020, Chapter
154)
36-35-102
, (Renumbered from 63G-3-501, as last amended by Laws of Utah 2023,
Chapter 329)
36-35-103
, (Renumbered from 36-32-202, as enacted by Laws of Utah 2020, Chapter
154)
36-35-104
, (Renumbered from 36-32-203, as enacted by Laws of Utah 2020, Chapter
154)
78A-2-203.5
, (Renumbered from 36-32-206, as enacted by Laws of Utah 2020,
Chapter 154)
REPEALS:
36-32-101
, as enacted by Laws of Utah 2020, Chapter 154
36-32-102
, as enacted by Laws of Utah 2020, Chapter 154
36-32-201
, as enacted by Laws of Utah 2020, Chapter 154
36-32-204
, as enacted by Laws of Utah 2020, Chapter 154
36-32-205
, as enacted by Laws of Utah 2020, Chapter 154
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
19-1-201
 is amended to read:
19-1-201.
Powers and duties of department -- Rulemaking authority --
Committee -- Monitoring environmental impacts of inland port.
(1) The department shall:
(a) enter into cooperative agreements with the Department of Health and Human
Services to delineate specific responsibilities to assure that assessment and management of risk
to human health from the environment are properly administered;
(b) consult with the Department of Health and Human Services and enter into
cooperative agreements, as needed, to ensure efficient use of resources and effective response
to potential health and safety threats from the environment, and to prevent gaps in protection
from potential risks from the environment to specific individuals or population groups;
(c) coordinate implementation of environmental programs to maximize efficient use of
resources by developing, in consultation with local health departments, a Comprehensive
Environmental Service Delivery Plan that:
(i) recognizes that the department and local health departments are the foundation for
providing environmental health programs in the state;
(ii) delineates the responsibilities of the department and each local health department
for the efficient delivery of environmental programs using federal, state, and local authorities,
responsibilities, and resources;
(iii) provides for the delegation of authority and pass through of funding to local health
departments for environmental programs, to the extent allowed by applicable law, identified in
the plan, and requested by the local health department; and
(iv) is reviewed and updated annually;
(d) make rules, in accordance with Title 63G, Chapter 3, Utah Administrative
Rulemaking Act, as follows:
(i) for a board created in Section 
19-1-106
, rules regarding:
(A) board meeting attendance; and
(B) conflicts of interest procedures; and
(ii) procedural rules that govern:
(A) an adjudicative proceeding, consistent with Section 
19-1-301
; and
(B) a special adjudicative proceeding, consistent with Section 
19-1-301.5
;
(e) ensure that training or certification required of a public official or public employee,
as those terms are defined in Section 
63G-22-102
, complies with Title 63G, Chapter 22, State
Training and Certification Requirements, if the training or certification is required:
(i) under this title;
(ii) by the department; or
(iii) by an agency or division within the department; and
(f) subject to Subsection (2), establish annual fees that conform with Title V of the
Clean Air Act for each regulated pollutant as defined in Section 
19-2-109.1
, applicable to a
source subject to the Title V program.
(2) (a) A fee established under Subsection (1)(f) is in addition to a fee assessed under
Subsection (6)(i) for issuance of an approval order.
(b) In establishing a fee under Subsection (1)(f), the department shall comply with
Section 
63J-1-504
 that requires a public hearing and requires the established fee to be
submitted to the Legislature for the Legislature's approval as part of the department's annual
appropriations request.
(c) A fee established under this section shall cover the reasonable direct and indirect
costs required to develop and administer the Title V program and the small business assistance
program established under Section 
19-2-109.2
.
(d) A fee established under Subsection (1)(f) shall be established for all sources subject
to the Title V program and for all regulated pollutants.
(e) An emission fee may not be assessed for a regulated pollutant if the emissions are
already accounted for within the emissions of another regulated pollutant.
(f) An emission fee may not be assessed for any amount of a regulated pollutant
emitted by any source in excess of 4,000 tons per year of that regulated pollutant.
(g) An emission fee shall be based on actual emissions for a regulated pollutant unless
a source elects, before the issuance or renewal of a permit, to base the fee during the period of
the permit on allowable emissions for that regulated pollutant.
(h) The fees collected by the department under Subsection (1)(f) and penalties
collected under Subsection 
19-2-109.1
(4) shall be deposited into the General Fund as the Air
Pollution Operating Permit Program dedicated credit to be used solely to pay for the reasonable
direct and indirect costs incurred by the department in developing and administering the
program and the small business assistance program under Section 
19-2-109.2
.
(3) The department shall establish a committee that consists of:
(a) the executive director or the executive director's designee;
(b) two representatives of the department appointed by the executive director; and
(c) three representatives of local health departments appointed by a group of all the
local health departments in the state.
(4) (a) The committee established in Subsection (3) shall:
(i) review the allocation of environmental quality resources between the department
and the local health departments, including whether funds allocated by contract were allocated
in accordance with the formula described in Section 
26A-1-116
;
(ii) evaluate rules and department policies that affect local health departments in
accordance with Subsection (4)(b);
(iii) consider policy changes proposed by the department or by local health
departments;
(iv) coordinate the implementation of environmental quality programs to maximize
environmental quality resources; and
(v) review each department application for any grant from the federal government that
affects a local health department before the department submits the application.
(b) When evaluating a policy or rule that affects a local health department, the
committee shall:
(i) compute an estimate of the cost a local health department will bear to comply with
the policy or rule;
(ii) specify whether there is any funding provided to a local health department to
implement the policy or rule; and
(iii) advise whether the policy or rule is still needed.
(c) Before November 1 of each year, the department shall provide a report to the
[
Administrative
] Rules Review and General Oversight Committee regarding the determinations
made under Subsection (4)(b).
(5) The committee shall create bylaws to govern the committee's operations.
(6) The department may:
(a) investigate matters affecting the environment;
(b) investigate and control matters affecting the public health when caused by
environmental hazards;
(c) prepare, publish, and disseminate information to inform the public concerning
issues involving environmental quality;
(d) establish and operate programs, as authorized by this title, necessary for protection
of the environment and public health from environmental hazards;
(e) use local health departments in the delivery of environmental health programs to
the extent provided by law;
(f) enter into contracts with local health departments or others to meet responsibilities
established under this title;
(g) acquire real and personal property by purchase, gift, devise, and other lawful
means;
(h) prepare and submit to the governor a proposed budget to be included in the budget
submitted by the governor to the Legislature;
(i) in accordance with Section 
63J-1-504
, establish a schedule of fees that may be
assessed for actions and services of the department that are reasonable, fair, and reflect the cost
of services provided;
(j) for an owner or operator of a source subject to a fee established by Subsection (6)(i)
who fails to timely pay that fee, assess a penalty of not more than 50% of the fee, in addition to
the fee, plus interest on the fee computed at 12% annually;
(k) prescribe by rule reasonable requirements not inconsistent with law relating to
environmental quality for local health departments;
(l) perform the administrative functions of the boards established by Section 
19-1-106
,
including the acceptance and administration of grants from the federal government and from
other sources, public or private, to carry out the board's functions;
(m) upon the request of a board or a division director, provide professional, technical,
and clerical staff and field and laboratory services, the extent of which are limited by the
money available to the department for the staff and services; and
(n) establish a supplementary fee, not subject to Section 
63J-1-504
, to provide service
that the person paying the fee agrees by contract to be charged for the service to efficiently use
department resources, protect department permitting processes, address extraordinary or
unanticipated stress on permitting processes, or make use of specialized expertise.
(7) In providing service under Subsection (6)(n), the department may not provide
service in a manner that impairs another person's service from the department.
(8) (a) As used in this Subsection (8):
(i) "Environmental impacts" means:
(A) impacts on air quality, including impacts associated with air emissions; and
(B) impacts on water quality, including impacts associated with storm water runoff.
(ii) "Inland port" means the same as that term is defined in Section 
11-58-102
.
(iii) "Inland port area" means the area in and around the inland port that bears the
environmental impacts of destruction, construction, development, and operational activities
within the inland port.
(iv) "Monitoring facilities" means:
(A) for monitoring air quality, a sensor system consisting of monitors to measure levels
of research-grade particulate matter, ozone, and oxides of nitrogen, and data logging equipment
with internal data storage that are interconnected at all times to capture air quality readings and
store data; and
(B) for monitoring water quality, facilities to collect groundwater samples, including in
existing conveyances and outfalls, to evaluate sediment, metals, organics, and nutrients due to
storm water.
(b) The department shall:
(i) develop and implement a sampling and analysis plan to:
(A) characterize the environmental baseline for air quality and water quality in the
inland port area;
(B) characterize the environmental baseline for only air quality for the Salt Lake
International Airport; and
(C) define the frequency, parameters, and locations for monitoring;
(ii) establish and maintain monitoring facilities to measure the environmental impacts
in the inland port area arising from destruction, construction, development, and operational
activities within the inland port;
(iii) publish the monitoring data on the department's website; and
(iv) provide at least annually before November 30 a written report summarizing the
monitoring data to:
(A) the Utah Inland Port Authority board, established under Title 11, Chapter 58, Part
3, Port Authority Board; and
(B) the Legislative Management Committee.
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
created in Section 
36-35-102
; 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 Account created in Section 
26B-1-309
.
(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 
19-1-207
 is amended to read:
19-1-207.
Regulatory certainty to support economic recovery.
(1) On or before June 30, 2021, the Air Quality Board or the Water Quality Board may
not make, amend, or repeal a rule related to air or water quality pursuant to this title, if formal
rulemaking was not initiated on or before July 1, 2020, unless the rule constitutes:
(a) a state rule related to a federally-delegated program;
(b) a rule mandated by statute to be made, amended, or repealed on or before July 1,
2020; or
(c) subject to Subsection (2), a rule that is necessary because failure to make, amend, or
repeal the rule will:
(i) cause an imminent peril to the public health, safety, or welfare;
(ii) cause an imminent budget reduction because of budget restraints or federal
requirements;
(iii) place the agency in violation of federal or state law; or
(iv) fail to provide regulatory relief.
(2) In addition to complying with Title 63G, Chapter 3, Utah Administrative
Rulemaking Act, the department shall report to the [
Administrative
] Rules Review and General
Oversight Committee as to whether the need to act meets the requirements of Subsection
(1)(c).
(3) On or after August 31, 2020, but on or before June 30, 2021, the Air Quality Board,
Division of Air Quality, Water Quality Board, or Division of Water Quality may not impose a
new fee or increase a fee related to air or water quality pursuant to this title or rules made under
this title.
(4) Only the Legislature may extend the time limitations of this section.
(5) Notwithstanding the other provisions of this section, this section does not apply to a
rule, fee, or fee increase to the extent that the rule, fee, or fee increase applies to an activity in a
county of the first or second class.
(6) Notwithstanding the other provisions of this section, the agencies may engage with
stakeholders in the process of discussing, developing, and drafting a rule, fee, or fee increase
on or after July 1, 2020, but on or before June 30, 2021.
Section 4. Section 
19-5-104.5
 is amended to read:
19-5-104.5.
Legislative review and approval.
(1) Before sending a total maximum daily load and implementation strategy to the EPA
for review and approval, the Water Quality Board shall submit the total maximum daily load:
(a) for review to the Natural Resources, Agriculture, and Environment Interim
Committee if the total maximum daily load will require a public or private expenditure in
excess of $10,000,000 but less than $100,000,000 for compliance; or
(b) for approval to the Legislature if the total maximum daily load will require a public
or private expenditure of $100,000,000 or more.
(2) (a) As used in this Subsection (2):
(i) "Expenditure" means the act of expending funds:
(A) by an individual public facility with a Utah Pollutant Discharge Elimination
System permit, or by a group of private agricultural facilities; and
(B) through an initial capital investment, or through operational costs over a three-year
period.
(ii) "Utah Pollutant Discharge Elimination System" means the state permit system
created in accordance with 33 U.S.C. Sec. 1342.
(b) Before the board adopts a nitrogen or phosphorus rule or standard, the board shall
submit the rule or standard as directed in Subsections (2)(c) and (d).
(c) (i) If compliance with the rule or standard requires an expenditure in excess of
$250,000, but less than $10,000,000, the board shall submit the rule or standard for review to
the Natural Resources, Agriculture, and Environment Interim Committee.
(ii) (A) Except as provided in Subsection (2)(c)(ii)(B), the Natural Resources,
Agriculture, and Environment Interim Committee shall review a rule or standard the board
submits under Subsection (2)(c)(i) during the Natural Resources, Agriculture, and Environment
Interim Committee's committee meeting immediately following the day on which the board
submits the rule or standard.
(B) If the committee meeting described in Subsection (2)(c)(ii)(A) is within five days
after the day on which the board submits the rule or standard for review, the Natural Resources,
Agriculture, and Environment Interim Committee shall review the rule or standard during the
committee meeting described in Subsection (2)(c)(ii)(A) or during the committee meeting
immediately following the committee meeting described in Subsection (2)(c)(ii)(A).
(d) If compliance with the rule or standard requires an expenditure of $10,000,000 or
more, the board shall submit the rule or standard for approval to the Legislature.
(e) (i) A facility shall estimate the cost of compliance with a board-proposed rule or
standard described in Subsection (2)(b) using:
(A) an independent, licensed engineer; and
(B) industry-accepted project cost estimate methods.
(ii) The board may evaluate and report on a compliance estimate described in
Subsection (2)(e)(i).
(f) If there is a discrepancy in the estimated cost to comply with a rule or standard, the
Office of the Legislative Fiscal Analyst shall determine the estimated cost to comply with the
rule or standard.
(3) In reviewing a rule or standard, the Natural Resources, Agriculture, and
Environment Interim Committee may:
(a) consider the impact of the rule or standard on:
(i) economic costs and benefit;
(ii) public health; and
(iii) the environment;
(b) suggest additional areas of consideration; or
(c) recommend the rule or standard to the board for:
(i) adoption; or
(ii) re-evaluation followed by further review by the Natural Resources, Agriculture,
and Environment Interim Committee.
(4) When the Natural Resources, Agriculture, and Environment Interim Committee
sets the review of a rule or standard submitted under Subsection (2)(c)(i) as an agenda item, the
committee shall:
(a) before the review, directly inform the chairs of the [
Administrative
] Rules Review
and General Oversight Committee of the coming review, including the date, time, and place of
the review; and
(b) after the review, directly inform the chairs of the [
Administrative
] Rules Review
and General Oversight Committee of the outcome of the review, including any
recommendation.
Section 5. Section 
26B-1-207
 is amended to read:
26B-1-207.
Policymaking responsibilities -- Regulations for local health
departments prescribed by department -- Local standards not more stringent than
federal or state standards -- Consultation with local health departments -- Committee to
evaluate health policies and to review federal grants.
(1) In establishing public health policy, the department shall consult with the local
health departments established under Title 26A, Chapter 1, Local Health Departments.
(2) (a) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
the department may prescribe by administrative rule made in accordance with Title 63G,
Chapter 3, Utah Administrative Rulemaking Act, reasonable requirements not inconsistent
with law for a local health department as defined in Section 
26A-1-102
.
(b) Except where specifically allowed by federal law or state statute, a local health
department, as defined in Section 
26A-1-102
, may not establish standards or regulations that
are more stringent than those established by federal law, state statute, or administrative rule
adopted in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
(c) Nothing in this Subsection (2), limits the ability of a local health department to
make standards and regulations in accordance with Subsection 
26A-1-121
(1)(a) for:
(i) emergency rules made in accordance with Section 
63G-3-304
; or
(ii) items not regulated under federal law, state statute, or state administrative rule.
(3) (a) As used in this Subsection (3):
(i) "Committee" means the committee established under Subsection (3)(b).
(ii) "Exempt application" means an application for a federal grant that meets the
criteria established under Subsection (3)(c)(iii).
(iii) "Expedited application" means an application for a federal grant that meets the
criteria established under Subsection (3)(c)(iv).
(iv) "Federal grant" means a grant from the federal government that could provide
funds for local health departments to help them fulfill their duties and responsibilities.
(v) "Reviewable application" means an application for a federal grant that is not an
exempt application.
(b) The department shall establish a committee consisting of:
(i) the executive director, or the executive director's designee;
(ii) two representatives of the department, appointed by the executive director; and
(iii) three representatives of local health departments, appointed by all local health
departments.
(c) The committee shall:
(i) evaluate the allocation of public health resources between the department and local
health departments, including whether funds allocated by contract were allocated in accordance
with the formula described in Section 
26A-1-116
;
(ii) evaluate policies and rules that affect local health departments in accordance with
Subsection (3)(g);
(iii) consider department policy and rule changes proposed by the department or local
health departments;
(iv) establish criteria by which an application for a federal grant may be judged to
determine whether it should be exempt from the requirements under Subsection (3)(d); and
(v) establish criteria by which an application for a federal grant may be judged to
determine whether committee review under Subsection (3)(d)(i) should be delayed until after
the application is submitted because the application is required to be submitted under a
timetable that makes committee review before it is submitted impracticable if the submission
deadline is to be met.
(d) (i) The committee shall review the goals and budget for each reviewable
application:
(A) before the application is submitted, except for an expedited application; and
(B) for an expedited application, after the application is submitted but before funds
from the federal grant for which the application was submitted are disbursed or encumbered.
(ii) Funds from a federal grant under a reviewable application may not be disbursed or
encumbered before the goals and budget for the federal grant are established by:
(A) a two-thirds vote of the committee, following the committee review under
Subsection (3)(d)(i); or
(B) if two-thirds of the committee cannot agree on the goals and budget, the chair of
the health advisory council, after consultation with the committee in a manner that the
committee determines.
(e) An exempt application is exempt from the requirements of Subsection (3)(d).
(f) The department may use money from a federal grant to pay administrative costs
incurred in implementing this Subsection (3).
(g) When evaluating a policy or rule that affects a local health department, the
committee shall determine:
(i) whether the department has the authority to promulgate the policy or rule;
(ii) an estimate of the cost a local health department will bear to comply with the policy
or rule;
(iii) whether there is any funding provided to a local health department to implement
the policy or rule; and
(iv) whether the policy or rule is still needed.
(h) Before November 1 of each year, the department shall provide a report to the
[
Administrative
] Rules Review and General Oversight Committee regarding the determinations
made under Subsection (3)(g).
Section 6. Section 
26B-1-219
 is amended to read:
26B-1-219.
Requirements for issuing, recommending, or facilitating rationing
criteria.
(1) As used in this section:
(a) "Health care resource" means:
(i) health care as defined in Section 
78B-3-403
;
(ii) a prescription drug as defined in Section 
58-17b-102
;
(iii) a prescription device as defined in Section 
58-17b-102
;
(iv) a nonprescription drug as defined in Section 
58-17b-102
; or
(v) any supply or treatment that is intended for use in the course of providing health
care as defined in Section 
78B-3-403
.
(b) (i) "Rationing criteria" means any requirement, guideline, process, or
recommendation regarding:
(A) the distribution of a scarce health care resource; or
(B) qualifications or criteria for a person to receive a scarce health care resource.
(ii) "Rationing criteria" includes crisis standards of care with respect to any health care
resource.
(c) "Scarce health care resource" means a health care resource:
(i) for which the need for the health care resource in the state or region significantly
exceeds the available supply of that health care resource in that state or region;
(ii) that, based on the circumstances described in Subsection (1)(c)(i), is distributed or
provided using written requirements, guidelines, processes, or recommendations as a factor in
the decision to distribute or provide the health care resource; and
(iii) that the federal government has allocated to the state to distribute.
(2) (a) On or before July 1, 2022, the department shall make rules in accordance with
Title 63G, Chapter 3, Utah Administrative Rulemaking Act, to establish a procedure that the
department will follow to adopt, modify, require, facilitate, or recommend rationing criteria.
(b) Beginning July 1, 2022, the department may not adopt, modify, require, facilitate,
or recommend rationing criteria unless the department follows the procedure established by the
department under Subsection (2)(a).
(3) The procedures developed by the department under Subsection (2) shall include, at
a minimum:
(a) a requirement that the department notify the following individuals in writing before
rationing criteria are issued, are recommended, or take effect:
(i) the [
Administrative
] Rules Review and General Oversight Committee created in
Section [
63G-3-501
] 
36-35-102
;
(ii) the governor or the governor's designee;
(iii) the president of the Senate or the president's designee;
(iv) the speaker of the House of Representatives or the speaker's designee;
(v) the executive director or the executive director's designee; and
(vi) if rationing criteria affect hospitals in the state, a representative of an association
representing hospitals throughout the state, as designated by the executive director; and
(b) procedures for an emergency circumstance which shall include, at a minimum:
(i) a description of the circumstances under which emergency procedures described in
this Subsection (3)(b) may be used; and
(ii) a requirement that the department notify the individuals described in Subsections
(3)(a)(i) through (vi) as soon as practicable, but no later than 48 hours after the rationing
criteria take effect.
(4) (a) Within 30 days after March 22, 2022, the department shall send to the
[
Administrative
] Rules Review and General Oversight Committee all rationing criteria that:
(i) were adopted, modified, required, facilitated, or recommended by the department
prior to March 22, 2022; and
(ii) on March 22, 2022, were in effect and in use to distribute or qualify a person to
receive scarce health care resources.
(b) During the 2022 interim, the [
Administrative
] Rules Review and General Oversight
Committee shall, under Subsection [
63G-3-501
(3)(d)(i)
] 
36-35-102
(3)(c)
, review each of the
rationing criteria submitted by the department under 
this
 Subsection (4)(a).
(5) The requirements described in this section and rules made under this section shall
apply regardless of whether rationing criteria:
(a) have the force and effect of law, or is solely advisory, informative, or descriptive;
(b) are carried out or implemented directly or indirectly by the department or by other
individuals or entities; or
(c) are developed solely by the department or in collaboration with other individuals or
entities.
(6) This section:
(a) may not be suspended under Section 
53-2a-209
 or any other provision of state law
relating to a state of emergency;
(b) does not limit a private entity from developing or implementing rationing criteria;
and
(c) does not require the department to adopt, modify, require, facilitate, or recommend
rationing criteria that the department does not determine to be necessary or appropriate.
(7) Subsection (2) does not apply to rationing criteria that are adopted, modified,
required, facilitated, or recommended by the department:
(a) through the regular, non-emergency rulemaking procedure described in Section
63G-3-301
;
(b) if the modification is solely to correct a technical error in rationing criteria such as
correcting obvious errors and inconsistencies including those involving punctuation,
capitalization, cross references, numbering, and wording;
(c) to the extent that compliance with this section would result in a direct violation of
federal law;
(d) that are necessary for administration of the Medicaid program;
(e) if state law explicitly authorizes the department to engage in rulemaking to
establish rationing criteria; or
(f) if rationing criteria are authorized directly through a general appropriation bill that
is validly enacted.
Section 7. Section 
26B-3-129
 is amended to read:
26B-3-129.
Review of claims -- Audit and investigation procedures.
(1) (a) The department shall adopt administrative rules in accordance with Title 63G,
Chapter 3, Utah Administrative Rulemaking Act, and in consultation with providers and health
care professionals subject to audit and investigation under the state Medicaid program, to
establish procedures for audits and investigations that are fair and consistent with the duties of
the department as the single state agency responsible for the administration of the Medicaid
program under Section 
26B-3-108
 and Title XIX of the Social Security Act.
(b) If the providers and health care professionals do not agree with the rules proposed
or adopted by the department under Subsection (1)(a), the providers or health care
professionals may:
(i) request a hearing for the proposed administrative rule or seek any other remedies
under the provisions of Title 63G, Chapter 3, Utah Administrative Rulemaking Act; and
(ii) request a review of the rule by the Legislature's [
Administrative
] Rules Review and
General Oversight Committee created in Section [
63G-3-501
] 
36-35-102
.
(2) The department shall:
(a) notify and educate providers and health care professionals subject to audit and
investigation under the Medicaid program of the providers' and health care professionals'
responsibilities and rights under the administrative rules adopted by the department under the
provisions of this section;
(b) ensure that the department, or any entity that contracts with the department to
conduct audits:
(i) has on staff or contracts with a medical or dental professional who is experienced in
the treatment, billing, and coding procedures used by the type of provider being audited; and
(ii) uses the services of the appropriate professional described in Subsection (3)(b)(i) if
the provider who is the subject of the audit disputes the findings of the audit;
(c) ensure that a finding of overpayment or underpayment to a provider is not based on
extrapolation, as defined in Section 
63A-13-102
, unless:
(i) there is a determination that the level of payment error involving the provider
exceeds a 10% error rate:
(A) for a sample of claims for a particular service code; and
(B) over a three year period of time;
(ii) documented education intervention has failed to correct the level of payment error;
and
(iii) the value of the claims for the provider, in aggregate, exceeds $200,000 in
reimbursement for a particular service code on an annual basis; and
(d) require that any entity with which the office contracts, for the purpose of
conducting an audit of a service provider, shall be paid on a flat fee basis for identifying both
overpayments and underpayments.
(3) (a) If the department, or a contractor on behalf of the department:
(i) intends to implement the use of extrapolation as a method of auditing claims, the
department shall, prior to adopting the extrapolation method of auditing, report its intent to use
extrapolation to the Social Services Appropriations Subcommittee; and
(ii) determines Subsections (2)(c)(i) through (iii) are applicable to a provider, the
department or the contractor may use extrapolation only for the service code associated with
the findings under Subsections (2)(c)(i) through (iii).
(b) (i) If extrapolation is used under this section, a provider may, at the provider's
option, appeal the results of the audit based on:
(A) each individual claim; or
(B) the extrapolation sample.
(ii) Nothing in this section limits a provider's right to appeal the audit under Title 63G,
General Government, Title 63G, Chapter 4, Administrative Procedures Act, the Medicaid
program and its manual or rules, or other laws or rules that may provide remedies to providers.
Section 8. Section 
36-12-24
, which is renumbered from Section 36-32-207 is
renumbered and amended to read:
[
36-32-207
].
 36-12-24.
Legislative counsel attendance at Supreme Court
advisory committees.
[
The
] 
An attorney from the
 Office of Legislative Research and General Counsel shall,
when practicable, attend meetings of the advisory committees of the Supreme Court.
Section 9. Section 
36-35-101
 is enacted to read:
 36-35-101.
Definitions.
As used in this chapter:
(1) "Agency rule" means the same as the term "rule" is defined in Section 
63G-3-101
.
(2) "Committee" means the Rules Review and General Oversight Committee.
(3) "Court Rule" means any of the following, whether existing, new, or proposed:
(a) rules of procedure, evidence, or practice for use of the courts of this state;
(b) rules governing and managing the appellate process adopted by the Supreme Court;
or
(c) rules adopted by the Judicial Council for the administration of the courts of the
state.
(4) "Judicial advisory committee" means the committee that proposes to the Supreme
Court rules or changes in court rules related to:
(a) civil procedure;
(b) criminal procedure;
(c) juvenile procedure;
(d) appellate procedure;
(e) evidence;
(f) professional conduct; and
(g) the subject matter focus of any other committee that the Supreme Court establishes
to propose rules or changes in court rules to the Supreme Court.
(5) "Judicial council" means the administrative body of the courts, established in the
Utah Constitution, Article VIII, Section 12, and Section 
78A-2-104
.
(6) "Proposal for court rule" means the proposed language in a court rule that is
submitted to:
(a) the Judicial Council;
(b) the advisory committee; or
(c) the Supreme Court.
(7) "Rule" means an agency rule or a court rule.
Section 10. Section 
36-35-102
, which is renumbered from Section 63G-3-501 is
renumbered and amended to read:
[
63G-3-501
].
 36-35-102.
 Rules Review and General Oversight Committee.
(1) (a) There is created [
an Administrative
] 
a
 Rules Review and General Oversight
Committee of the following 10 permanent members:
(i) five members of the Senate appointed by the president of the Senate, no more than
three of whom may be from the same political party; and
(ii) five members of the House of Representatives appointed by the speaker of the
House of Representatives, no more than three of whom may be from the same political party.
(b) Each permanent member shall serve:
(i) for a two-year term; or
(ii) until the permanent member's successor is appointed.
(c) (i) A vacancy exists when a permanent member ceases to be a member of the
Legislature, or when a permanent member resigns from the committee.
(ii) When a vacancy exists:
(A) if the departing member is a member of the Senate, the president of the Senate
shall appoint a member of the Senate to fill the vacancy; or
(B) if the departing member is a member of the House of Representatives, the speaker
of the House of Representatives shall appoint a member of the House of Representatives to fill
the vacancy.
(iii) The newly appointed member shall serve the remainder of the departing member's
unexpired term.
(d) (i) The president of the Senate shall designate a member of the Senate appointed
under Subsection (1)(a)(i) as a cochair of the committee.
(ii) The speaker of the House of Representatives shall designate a member of the
House of Representatives appointed under Subsection (1)(a)(ii) as a cochair of the committee.
(e) Three representatives and three senators from the permanent members are a quorum
for the transaction of business at any meeting.
(f) (i) Subject to Subsection (1)(f)(ii), the committee shall meet at least once each
month to review new agency 
rules and court
 rules, amendments to existing agency 
rules and
court
 rules, and repeals of existing agency 
rules and court
 rules.
(ii) The committee chairs may suspend the meeting requirement described in
Subsection (1)(f)(i) at the committee chairs' discretion.
(2) The office shall submit a copy of each issue of the bulletin to the committee.
(3) (a) The committee shall exercise continuous oversight of the 
administrative
rulemaking process 
under Title 63G, Chapter 3, Utah Administrative Rulemaking Act, and
shall, for each general session of the Legislature, request legislation that considers legislative
reauthorization of agency rules as provided under Section 
63G-3-502
.
(b) The committee shall examine each 
agency
 rule, including any 
agency
 rule made
according to the emergency rulemaking procedure described in Section 
63G-3-304
, submitted
by an agency to determine:
(i) whether the 
agency
 rule is authorized by statute;
(ii) whether the 
agency
 rule complies with legislative intent;
(iii) the 
agency
 rule's impact on the economy and the government operations of the
state and local political subdivisions;
(iv) the 
agency
 rule's impact on affected persons;
(v) the 
agency
 rule's total cost to entities regulated by the state;
(vi) the 
agency
 rule's benefit to the citizens of the state; and
(vii) whether adoption of the 
agency
 rule requires legislative review or approval.
(c) 
(i)
 The committee may examine and review:
[
(i)
] 
(A)
 any executive order issued pursuant to Title 53, Chapter 2a, Part 2, Disaster
Response and Recovery Act;
[
(ii)
] 
(B)
 any public health order issued during a public health emergency declared in
accordance with Title 26A, Local Health Authorities, or Title 26B, Utah Health and Human
Services Code; or
[
(iii)
] 
(C)
 [
an agency's policies
] 
any agency policy
 that:
[
(A)
] 
(I)
 [
affect
] 
affects
 a class of persons other than the agency; or
[
(B)
] 
(II)
 [
are
] 
is
 contrary to legislative intent.
[
(d) (i) To carry out these duties, the committee may examine any other issues that the
committee considers necessary.
]
[
(ii) Notwithstanding anything to the contrary in this section, the committee may not
examine an agency's internal policies, procedures, or practices.
]
[
(iii) The committee may also notify and refer rules to the chairs of the interim
committee that has jurisdiction over a particular agency when the committee determines that an
issue involved in an agency's rules may be more appropriately addressed by that committee
].
(ii) If the committee chooses to examine or review an order or policy described in
Subsection (3)(c)(i), the agency that issued the order or policy shall, upon request by the
committee, provide to the committee:
(A) a copy of the order or policy; and
(B) information related to the order or policy.
(d) The committee shall review court rules as provided in Section 
36-35-103
 and
Section 
36-35-104
.
[
(e) An agency shall respond to a request from the committee for:
]
[
(i) an agency's policy described in Subsection (3)(c)(iii); or
]
[
(ii) information related to an agency's policy described in Subsection (3)(c)(iii).
]
(4) (a) To carry out the requirements of Subsection (3), the committee may examine
any other issues that the committee considers necessary.
(b) Notwithstanding anything to the contrary in this section, the committee may not
examine the internal policies, procedures, or practices of an agency or judicial branch entity.
[
(f)
] 
(c)
 In reviewing a rule, the committee shall follow generally accepted principles of
statutory construction.
[
(4)
] 
(5)
 When the committee reviews an existing rule, the committee chairs
:
(a)
 shall invite the Senate and House chairs of the standing committee and of the
appropriation subcommittee that have jurisdiction over the agency 
or judicial branch entity
whose existing rule is being reviewed to participate as nonvoting, ex officio members with the
committee[
.
] 
during the review of the rule; and
(b) may notify and refer the rule to the chairs of the interim committee that has
jurisdiction over a particular agency or judicial branch entity when the committee determines
that an issue involved in the rule may be more appropriately addressed by that committee.
[
(5)
] 
(6)
 The committee may request that the Office of the Legislative Fiscal Analyst
prepare a fiscal note on any rule 
or proposal for court rule
.
[
(6)
] 
(7)
 In order to accomplish the committee's functions described in this chapter, the
committee has all the powers granted to legislative interim committees under Section 
36-12-11
.
[
(7)
] 
(8)
 (a) The committee may prepare written findings of the committee's review of a
rule, 
proposal for court rule,
 policy, practice, or procedure and may include any
recommendation, including:
(i) legislative action; [
or
]
(ii) action by a standing committee or interim committee[
.
]
;
(iii) agency rulemaking action;
(iv) Supreme Court rulemaking action; or
(v) Judicial Council rulemaking action.
(b) When the committee reviews a rule, the committee shall provide to the agency 
or
judicial branch entity
 that enacted the rule:
(i) the committee's findings, if any; and
(ii) a request that the agency 
or judicial branch entity
 notify the committee of any
changes the agency 
or judicial branch entity
 makes to the rule.
(c) The committee shall provide a copy of the committee's findings described in
Subsection [
(7)(a)
] 
(8)(a)
, if any, to:
(i) any member of the Legislature, upon request;
(ii) any person affected by the rule, upon request;
(iii) the president of the Senate;
(iv) the speaker of the House of Representatives;
(v) the Senate and House chairs of the standing committee that has jurisdiction over the
agency 
or judicial branch entity
 whose rule, policy, practice, or procedure is the subject of the
finding; [
and
]
(vi) the Senate and House chairs of the appropriation subcommittee that has
jurisdiction over the agency 
or judicial branch entity
 that made the rule[
.
]
;
(vii) the governor; and
(viii) if the findings involve a court rule or judicial branch entity:
(A) the Judiciary Interim Committee;
(B) the Supreme Court; and
(C) the Judicial Council.
[
(8)
] 
(9)
 (a) (i) The committee may submit a report on the committee's review under
this section to each member of the Legislature at each regular session.
(ii) The report shall include:
(A) any finding or recommendation the committee made under Subsection [
(7)
] 
(8)
;
(B) any action an agency
, the Supreme Court, or the Judicial Council
 took in response
to a committee recommendation; and
(C) any recommendation by the committee for legislation.
(b) If the committee receives a recommendation not to reauthorize [
a
] 
an agency
 rule,
as described in Subsection 
63G-3-301
(13)(b), and the committee recommends to the
Legislature reauthorization of the 
agency
 rule, the committee shall submit a report to each
member of the Legislature detailing the committee's decision.
(c) If the committee recommends legislation, the committee may prepare legislation for
consideration by the Legislature at the next general session.
Section 11. Section 
36-35-103
, which is renumbered from Section 36-32-202 is
renumbered and amended to read:
[
36-32-202
].
 36-35-103.
Submission of court rules or proposals for court
rules.
(1) The Supreme Court or the Judicial Council shall submit to the committee and the
governor each [
court rule, proposal for
] 
proposed court rule and each new
 court rule, and any
additional information related to [
a court rule or proposal for
] 
the
 court rule that the Supreme
Court or Judicial Council considers relevant:
(a) when the court rule [
or proposal for court rule
] is submitted:
(i) to the Judicial Council for consideration or approval for public comment; or
(ii) to the Supreme Court by the advisory committee after the advisory committee's
consideration or approval; and
(b) when the [
approved court rule or approved proposal for
] court rule is made
available to members of the bar and the public for public comment.
(2) At the time of submission under Subsection (1), the Supreme Court or Judicial
Council shall provide the committee with the name and contact information of a Supreme
Court advisory committee or Judicial Council employee whom the committee may contact
about the submission.
Section 12. Section 
36-35-104
, which is renumbered from Section 36-32-203 is
renumbered and amended to read:
[
36-32-203
].
 36-35-104.
Review of court rules -- Criteria.
(1) As used in this section, "court rule" means a [
new court rule, a
] proposal for 
a
 court
rule, 
a new court rule,
 or an existing court rule.
(2) The committee 
may review and evaluate
:
(a) [
shall review and evaluate
] a submission of:
(i) a 
new
 court rule; or
(ii) a proposal for 
a
 court rule; and
(b) [
may review
] an existing court rule.
(3) [
The
] 
If the
 committee [
shall
] 
chooses to
 conduct a review of a court rule
[
described in
] 
as provided under
 Subsection (2)
, the review shall be
 based on the following
criteria:
(a) whether the court rule is authorized by the state constitution or by statute;
(b) if authorized by statute, whether the court rule complies with legislative intent;
(c) whether the court rule is in conflict with existing statute or governs a policy
expressed in statute;
(d) whether the court rule is primarily substantive or procedural in nature;
(e) whether the court rule infringes on the powers of the executive or legislative branch
of government;
(f) the impact of the court rule on an affected person;
(g) the purpose for the court rule, and if applicable, the reason for a change to an
existing court rule;
(h) the anticipated cost or savings due to the court rule to:
(i) the state budget;
(ii) local governments; and
(iii) individuals; and
(i) the cost to an affected person of complying with the court rule.
Section 13. Section 
40-6-22
 is amended to read:
40-6-22.
Regulatory certainty to support economic recovery.
(1) On or before June 30, 2021, the board or division may not make, amend, or repeal a
rule pursuant to this title, if formal rulemaking was not initiated on or before July 1, 2020,
unless the rule constitutes:
(a) a state rule related to a federally-delegated program;
(b) a rule mandated by statute to be made, amended, or repealed on or before July 1,
2020; or
(c) subject to Subsection (2), a rule that is necessary because failure to make, amend, or
repeal the rule will:
(i) cause an imminent peril to the public health, safety, or welfare;
(ii) cause an imminent budget reduction because of budget restraints or federal
requirements;
(iii) place the agency in violation of federal or state law; or
(iv) fail to provide regulatory relief.
(2) In addition to complying with Title 63G, Chapter 3, Utah Administrative
Rulemaking Act, the board or division shall report to the [
Administrative
] Rules Review and
General Oversight Committee as to whether the need to act meets the requirements of
Subsection (1)(c).
(3) On or after August 31, 2020, but on or before June 30, 2021, the board or division
may not impose a new fee or increase a fee pursuant to this title or rules made under this title.
(4) Only the Legislature may extend the time limitations of this section.
(5) Notwithstanding the other provisions of this section, this section does not apply to a
rule, fee, or fee increase to the extent that the rule, fee, or fee increase applies to an activity in a
county of the first or second class.
(6) Notwithstanding the other provisions of this section, the agencies may engage with
stakeholders in the process of discussing, developing, and drafting a rule, fee, or fee increase
on or after July 1, 2020, but on or before June 30, 2021.
Section 14. Section 
53B-27-303
 is amended to read:
53B-27-303.
Complaint process -- Reporting.
(1) Before August 1, 2019, the board shall make rules in accordance with Title 63G,
Chapter 3, Utah Administrative Rulemaking Act, establishing a procedure whereby a student
enrolled in an institution may submit a complaint to the board alleging a policy of the
institution directly affects one or more of the student's civil liberties.
(2) (a) When a student submits a complaint in accordance with the rules adopted under
Subsection (1), the board shall:
(i) examine the complaint and, within 30 days after the day on which the board
receives the complaint, determine whether the complaint is made in good faith; and
(ii) (A) if the board determines that the complaint is made in good faith, direct the
institution against which the complaint is made to initiate rulemaking proceedings for the
challenged policy; or
(B) if the board determines that the complaint is made in bad faith, dismiss the
complaint.
(b) Before November 30 of each year, the board shall submit a report to the
[
Administrative
] Rules Review and General Oversight Committee detailing:
(i) the number of complaints the board received during the preceding year;
(ii) the number of complaints the board found to be made in good faith during the
preceding year; and
(iii) each policy that is the subject of a good-faith complaint that the board received
during the preceding year.
(3) If the board directs an institution to initiate rulemaking proceedings for a
challenged policy in accordance with this section, the institution shall initiate rulemaking
proceedings for the policy within 60 days after the day on which the board directs the
institution. 
Section 15. Section 
54-17-701
 is amended to read:
54-17-701.
Rules for carbon capture and geological storage.
(1) By January 1, 2011, the Division of Water Quality and the Division of Air Quality,
on behalf of the Board of Water Quality and the Board of Air Quality, respectively, in
collaboration with the commission and the Division of Oil, Gas, and Mining and the Utah
Geological Survey, shall present recommended rules to the Legislature's [
Administrative
]
Rules Review and General Oversight Committee for the following in connection with carbon
capture and accompanying geological sequestration of captured carbon:
(a) site characterization approval;
(b) geomechanical, geochemical, and hydrogeological simulation;
(c) risk assessment;
(d) mitigation and remediation protocols;
(e) issuance of permits for test, injection, and monitoring wells;
(f) specifications for the drilling, construction, and maintenance of wells;
(g) issues concerning ownership of subsurface rights and pore space;
(h) allowed composition of injected matter;
(i) testing, monitoring, measurement, and verification for the entirety of the carbon
capture and geologic sequestration chain of operations, from the point of capture of the carbon
dioxide to the sequestration site;
(j) closure and decommissioning procedure;
(k) short- and long-term liability and indemnification for sequestration sites;
(l) conversion of enhanced oil recovery operations to carbon dioxide geological
sequestration sites; and
(m) other issues as identified.
(2) The entities listed in Subsection (1) shall report to the Legislature's
[
Administrative
] Rules Review and General Oversight Committee any proposals for additional
statutory changes needed to implement rules contemplated under Subsection (1).
(3) On or before July 1, 2009, the entities listed in Subsection (1) shall submit to the
Legislature's Public Utilities, Energy, and Technology and Natural Resources, Agriculture, and
Environment Interim Committees a progress report on the development of the recommended
rules required by this part.
(4) The recommended rules developed under this section apply to the injection of
carbon dioxide and other associated injectants in allowable types of geological formations for
the purpose of reducing emissions to the atmosphere through long-term geological
sequestration as required by law or undertaken voluntarily or for subsequent beneficial reuse.
(5) The recommended rules developed under this section do not apply to the injection
of fluids through the use of Class II injection wells as defined in 40 C.F.R. 144.6(b) for the
purpose of enhanced hydrocarbon recovery.
(6) Rules recommended under this section shall:
(a) ensure that adequate health and safety standards are met;
(b) minimize the risk of unacceptable leakage from the injection well and injection
zone for carbon capture and geologic sequestration; and
(c) provide adequate regulatory oversight and public information concerning carbon
capture and geologic sequestration.
Section 16. 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
created under Section 
36-35-102
; 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 Account created by
Section 
26B-1-309
.
(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 17. Section 
63A-13-202
 is amended to read:
63A-13-202.
Duties and powers of inspector general and office.
(1) The inspector general of Medicaid services shall:
(a) administer, direct, and manage the office;
(b) inspect and monitor the following in relation to the state Medicaid program:
(i) the use and expenditure of federal and state funds;
(ii) the provision of health benefits and other services;
(iii) implementation of, and compliance with, state and federal requirements; and
(iv) records and recordkeeping procedures;
(c) receive reports of potential fraud, waste, or abuse in the state Medicaid program;
(d) investigate and identify potential or actual fraud, waste, or abuse in the state
Medicaid program;
(e) consult with the Centers for Medicaid and Medicare Services and other states to
determine and implement best practices for:
(i) educating and communicating with health care professionals and providers about
program and audit policies and procedures;
(ii) discovering and eliminating fraud, waste, and abuse of Medicaid funds; and
(iii) differentiating between honest mistakes and intentional errors, or fraud, waste, and
abuse, if the office enters into settlement negotiations with the provider or health care
professional;
(f) obtain, develop, and utilize computer algorithms to identify fraud, waste, or abuse
in the state Medicaid program;
(g) work closely with the fraud unit to identify and recover improperly or fraudulently
expended Medicaid funds;
(h) audit, inspect, and evaluate the functioning of the division for the purpose of
making recommendations to the Legislature and the department to ensure that the state
Medicaid program is managed:
(i) in the most efficient and cost-effective manner possible; and
(ii) in a manner that promotes adequate provider and health care professional
participation and the provision of appropriate health benefits and services;
(i) regularly advise the department and the division of an action that could be taken to
ensure that the state Medicaid program is managed in the most efficient and cost-effective
manner possible;
(j) refer potential criminal conduct, relating to Medicaid funds or the state Medicaid
program, to the fraud unit;
(k) refer potential criminal conduct, including relevant data from the controlled
substance database, relating to Medicaid fraud, to law enforcement in accordance with Title 58,
Chapter 37f, Controlled Substance Database Act;
(l) determine ways to:
(i) identify, prevent, and reduce fraud, waste, and abuse in the state Medicaid program;
and
(ii) balance efforts to reduce costs and avoid or minimize increased costs of the state
Medicaid program with the need to encourage robust health care professional and provider
participation in the state Medicaid program;
(m) recover improperly paid Medicaid funds;
(n) track recovery of Medicaid funds by the state;
(o) in accordance with Section 
63A-13-502
:
(i) report on the actions and findings of the inspector general; and
(ii) make recommendations to the Legislature and the governor;
(p) provide training to:
(i) agencies and employees on identifying potential fraud, waste, or abuse of Medicaid
funds; and
(ii) health care professionals and providers on program and audit policies and
compliance; and
(q) develop and implement principles and standards for the fulfillment of the duties of
the inspector general, based on principles and standards used by:
(i) the Federal Offices of Inspector General;
(ii) the Association of Inspectors General; and
(iii) the United States Government Accountability Office.
(2) (a) The office may, in fulfilling the duties under Subsection (1), conduct a
performance or financial audit of:
(i) a state executive branch entity or a local government entity, including an entity
described in Section 
63A-13-301
, that:
(A) manages or oversees a state Medicaid program; or
(B) manages or oversees the use or expenditure of state or federal Medicaid funds; or
(ii) Medicaid funds received by a person by a grant from, or under contract with, a state
executive branch entity or a local government entity.
(b) (i) The office may not, in fulfilling the duties under Subsection (1), amend the state
Medicaid program or change the policies and procedures of the state Medicaid program.
(ii) The office shall identify conflicts between the state Medicaid plan, department
administrative rules, Medicaid provider manuals, and Medicaid information bulletins and
recommend that the department reconcile inconsistencies. If the department does not reconcile
the inconsistencies, the office shall report the inconsistencies to the Legislature's
[
Administrative
] Rules Review and General Oversight Committee created in Section
[
63G-3-501
] 
36-35-102
.
(iii) Beginning July 1, 2013, the office shall review a Medicaid provider manual and a
Medicaid information bulletin in accordance with Subsection (2)(b)(ii), prior to the department
making the provider manual or Medicaid information bulletin available to the public.
(c) Beginning July 1, 2013, the Department of Health 
and Human Services
 shall submit
a Medicaid provider manual and a Medicaid information bulletin to the office for the review
required by Subsection (2)(b)(ii) prior to releasing the document to the public. The department
and the Office of Inspector General of Medicaid Services shall enter into a memorandum of
understanding regarding the timing of the review process under Subsection (2)(b)(iii).
(3) (a) The office shall, in fulfilling the duties under this section to investigate,
discover, and recover fraud, waste, and abuse in the Medicaid program, apply the state
Medicaid plan, department administrative rules, Medicaid provider manuals, and Medicaid
information bulletins in effect at the time the medical services were provided.
(b) A health care provider may rely on the policy interpretation included in a current
Medicaid provider manual or a current Medicaid information bulletin that is available to the
public.
(4) The inspector general of Medicaid services, or a designee of the inspector general
of Medicaid services within the office, may take a sworn statement or administer an oath.
Section 18. Section 
63A-13-305
 is amended to read:
63A-13-305.
Audit and investigation procedures.
(1) (a) The office shall, in accordance with Section 
63A-13-602
, adopt administrative
rules in consultation with providers and health care professionals subject to audit and
investigation under this chapter to establish procedures for audits and investigations that are
fair and consistent with the duties of the office under this chapter.
(b) If the providers and health care professionals do not agree with the rules proposed
or adopted by the office under Subsection (1)(a) or Section 
63A-13-602
, the providers or health
care professionals may:
(i) request a hearing for the proposed administrative rule or seek any other remedies
under the provisions of Title 63G, Chapter 3, Utah Administrative Rulemaking Act; and
(ii) request a review of the rule by the Legislature's [
Administrative
] Rules Review and
General Oversight Committee created in Section [
63G-3-501
] 
36-35-102
.
(2) The office shall notify and educate providers and health care professionals subject
to audit and investigation under this chapter of the providers' and health care professionals'
responsibilities and rights under the administrative rules adopted by the office under the
provisions of this section and Section 
63A-13-602
.
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
created in Section 
36-35-102
; 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 Account created in Section 
26B-1-309
.
(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 
63G-3-301
 is amended to read:
63G-3-301.
Rulemaking procedure.
(1) An agency authorized to make rules is also authorized to amend or repeal those
rules.
(2) Except as provided in Sections 
63G-3-303
 and 
63G-3-304
, when making,
amending, or repealing a rule agencies shall comply with:
(a) the requirements of this section;
(b) consistent procedures required by other statutes;
(c) applicable federal mandates; and
(d) rules made by the office to implement this chapter.
(3) Subject to the requirements of this chapter, each agency shall develop and use
flexible approaches in drafting rules that meet the needs of the agency and that involve persons
affected by the agency's rules.
(4) (a) Each agency shall file the agency's proposed rule and rule analysis with the
office.
(b) Rule amendments shall be marked with new language underlined and deleted
language struck out.
(c) (i) The office shall publish the information required under Subsection (8) on the
rule analysis and the text of the proposed rule in the next issue of the bulletin.
(ii) For rule amendments, only the section or subsection of the rule being amended
need be printed.
(iii) If the director determines that the rule is too long to publish, the office shall
publish the rule analysis and shall publish the rule by reference to a copy on file with the office.
(5) Before filing a rule with the office, the agency shall conduct a thorough analysis,
consistent with the criteria established by the Governor's Office of Planning and Budget, of the
fiscal impact a rule may have on businesses, which criteria may include:
(a) the type of industries that will be impacted by the rule, and for each identified
industry, an estimate of the total number of businesses within the industry, and an estimate of
the number of those businesses that are small businesses;
(b) the individual fiscal impact that would incur to a typical business for a one-year
period;
(c) the aggregated total fiscal impact that would incur to all businesses within the state
for a one-year period;
(d) the total cost that would incur to all impacted entities over a five-year period; and
(e) the department head's comments on the analysis.
(6) If the agency reasonably expects that a proposed rule will have a measurable
negative fiscal impact on small businesses, the agency shall consider, as allowed by federal
law, each of the following methods of reducing the impact of the rule on small businesses:
(a) establishing less stringent compliance or reporting requirements for small
businesses;
(b) establishing less stringent schedules or deadlines for compliance or reporting
requirements for small businesses;
(c) consolidating or simplifying compliance or reporting requirements for small
businesses;
(d) establishing performance standards for small businesses to replace design or
operational standards required in the proposed rule; and
(e) exempting small businesses from all or any part of the requirements contained in
the proposed rule.
(7) If during the public comment period an agency receives comment that the proposed
rule will cost small business more than one day's annual average gross receipts, and the agency
had not previously performed the analysis in Subsection (6), the agency shall perform the
analysis described in Subsection (6).
(8) The rule analysis shall contain:
(a) a summary of the rule or change;
(b) the purpose of the rule or reason for the change;
(c) the statutory authority or federal requirement for the rule;
(d) the anticipated cost or savings to:
(i) the state budget;
(ii) local governments;
(iii) small businesses; and
(iv) persons other than small businesses, businesses, or local governmental entities;
(e) the compliance cost for affected persons;
(f) how interested persons may review the full text of the rule;
(g) how interested persons may present their views on the rule;
(h) the time and place of any scheduled public hearing;
(i) the name and telephone number of an agency employee who may be contacted
about the rule;
(j) the name of the agency head or designee who authorized the rule;
(k) the date on which the rule may become effective following the public comment
period;
(l) the agency's analysis on the fiscal impact of the rule as required under Subsection
(5);
(m) any additional comments the department head may choose to submit regarding the
fiscal impact the rule may have on businesses; and
(n) if applicable, a summary of the agency's efforts to comply with the requirements of
Subsection (6).
(9) (a) For a rule being repealed and reenacted, the rule analysis shall contain a
summary that generally includes the following:
(i) a summary of substantive provisions in the repealed rule which are eliminated from
the enacted rule; and
(ii) a summary of new substantive provisions appearing only in the enacted rule.
(b) The summary required under this Subsection (9) is to aid in review and may not be
used to contest any rule on the ground of noncompliance with the procedural requirements of
this chapter.
(10) A copy of the rule analysis shall be mailed to all persons who have made timely
request of the agency for advance notice of the agency's rulemaking proceedings and to any
other person who, by statutory or federal mandate or in the judgment of the agency, should also
receive notice.
(11) (a) Following the publication date, the agency shall allow at least 30 days for
public comment on the rule.
(b) The agency shall review and evaluate all public comments submitted in writing
within the time period under Subsection (11)(a) or presented at public hearings conducted by
the agency within the time period under Subsection (11)(a).
(12) (a) Except as provided in Sections 
63G-3-303
 and 
63G-3-304
, a proposed rule
becomes effective on any date specified by the agency that is:
(i) no fewer than seven calendar days after the day on which the public comment
period closes under Subsection (11); and
(ii) no more than 120 days after the day on which the rule is published.
(b) The agency shall provide notice of the rule's effective date to the office in the form
required by the office.
(c) The notice of effective date may not provide for an effective date before the day on
which the office receives the notice.
(d) The office shall publish notice of the effective date of the rule in the next issue of
the bulletin.
(e) A proposed rule lapses if a notice of effective date or a change to a proposed rule is
not filed with the office within 120 days after the day on which the rule is published.
(13) (a) Except as provided in Subsection (13)(d), before an agency enacts a rule, the
agency shall submit to the appropriations subcommittee and interim committee with
jurisdiction over the agency the agency's proposed rule for review, if the proposed rule, over a
three-year period, has a fiscal impact of more than:
(i) $250,000 to a single person; or
(ii) $7,500,000 to a group of persons.
(b) An appropriations subcommittee or interim committee that reviews a rule
submitted under Subsection (13)(a) shall:
(i) before the review, directly inform the chairs of the [
Administrative
] Rules Review
and General Oversight Committee of the coming review, including the date, time, and place of
the review; and
(ii) after the review, directly inform the chairs of the [
Administrative
] Rules Review
and General Oversight Committee of the outcome of the review, including any
recommendation.
(c) An appropriations subcommittee or interim committee that reviews a rule submitted
under Subsection (13)(a) may recommend to the [
Administrative
] Rules Review and General
Oversight Committee that the [
Administrative
] Rules Review and General Oversight
Committee not recommend reauthorization of the rule in the [
omnibus
] legislation described in
Section 
63G-3-502
.
(d) The requirement described in Subsection (13)(a) does not apply to:
(i) the State Tax Commission; or
(ii) the State Board of Education.
(14) (a) As used in this Subsection (14), "initiate rulemaking proceedings" means the
filing, for the purposes of publication in accordance with Subsection (4), of an agency's
proposed rule that is required by state statute.
(b) A state agency shall initiate rulemaking proceedings no later than 180 days after the
day on which the statutory provision that specifically requires the rulemaking takes effect,
except under Subsection (14)(c).
(c) When a statute is enacted that requires agency rulemaking and the affected agency
already has rules in place that meet the statutory requirement, the agency shall submit the rules
to the [
Administrative
] Rules Review and General Oversight Committee for review within 60
days after the day on which the statute requiring the rulemaking takes effect.
(d) If a state agency does not initiate rulemaking proceedings in accordance with the
time requirements in Subsection (14)(b), the state agency shall appear before the legislative
[
Administrative
] Rules Review and General Oversight Committee and provide the reasons for
the delay.
Section 21. Section 
63G-3-304
 is amended to read:
63G-3-304.
Emergency rulemaking procedure.
(1) All agencies shall comply with the rulemaking procedures of Section 
63G-3-301
unless an agency finds that these procedures would:
(a) cause an imminent peril to the public health, safety, or welfare;
(b) cause an imminent budget reduction because of budget restraints or federal
requirements; or
(c) place the agency in violation of federal or state law.
(2) (a) When finding that its rule is excepted from regular rulemaking procedures by
this section, the agency shall file with the office and the members of the [
Administrative
] Rules
Review and General Oversight Committee:
(i) the text of the rule; and
(ii) a rule analysis that includes the specific reasons and justifications for its findings.
(b) The office shall publish the rule in the bulletin as provided in Subsection
63G-3-301
(4).
(c) The agency shall notify interested persons as provided in Subsection
63G-3-301
(10).
(d) Subject to Subsection 
63G-3-502
(4), the rule becomes effective for a period not
exceeding 120 days on the date of filing or any later date designated in the rule.
(3) If the agency intends the rule to be effective beyond 120 days, the agency shall also
comply with the procedures of Section 
63G-3-301
.
Section 22. Section 
63G-3-402
 is amended to read:
63G-3-402.
Office of Administrative Rules -- Duties generally.
(1) The office shall:
(a) record in a register the receipt of all agency rules, rule analysis forms, and notices
of effective dates;
(b) make the register, copies of all proposed rules, and rulemaking documents available
for public inspection;
(c) publish all proposed rules, rule analyses, notices of effective dates, and review
notices in the bulletin at least monthly, except that the office may publish the complete text of
any proposed rule that the director determines is too long to print or too expensive to publish
by reference to the text maintained by the office;
(d) compile, format, number, and index all effective rules in an administrative code,
and periodically publish that code and supplements or revisions to it;
(e) publish a digest of all rules and notices contained in the most recent bulletin;
(f) publish at least annually an index of all changes to the administrative code and the
effective date of each change;
(g) print, or contract to print, all rulemaking publications the director determines
necessary to implement this chapter;
(h) distribute without charge the bulletin and administrative code to state-designated
repositories, the [
Administrative
] Rules Review and General Oversight Committee, the Office
of Legislative Research and General Counsel, and the two houses of the Legislature;
(i) distribute without charge the digest and index to state legislators, agencies, political
subdivisions on request, and the Office of Legislative Research and General Counsel;
(j) distribute, at prices covering publication costs, all paper rulemaking publications to
all other requesting persons and agencies;
(k) provide agencies assistance in rulemaking;
(l) if the department operates the office as an internal service fund agency in
accordance with Section 
63A-1-109.5
, submit to the Rate Committee established in Section
63A-1-114
:
(i) the proposed rate and fee schedule as required by Section 
63A-1-114
; and
(ii) other information or analysis requested by the Rate Committee;
(m) administer this chapter and require state agencies to comply with filing,
publication, and hearing procedures; and
(n) make technological improvements to the rulemaking process, including
improvements to automation and digital accessibility.
(2) The office shall establish by rule in accordance with Title 63G, Chapter 3, Utah
Administrative Rulemaking Act, all filing, publication, and hearing procedures necessary to
make rules under this chapter.
(3) The office may after notifying the agency make nonsubstantive changes to rules
filed with the office or published in the bulletin or code by:
(a) implementing a uniform system of formatting, punctuation, capitalization,
organization, numbering, and wording;
(b) correcting obvious errors and inconsistencies in punctuation, capitalization,
numbering, referencing, and wording;
(c) changing a catchline to more accurately reflect the substance of each section, part,
rule, or title;
(d) updating or correcting annotations associated with a section, part, rule, or title; and
(e) merging or determining priority of any amendment, enactment, or repeal to the
same rule or section made effective by an agency.
(4) In addition, the office may make the following nonsubstantive changes with the
concurrence of the agency:
(a) eliminate duplication within rules;
(b) eliminate obsolete and redundant words; and
(c) correct defective or inconsistent section and paragraph structure in arrangement of
the subject matter of rules.
(5) For nonsubstantive changes made in accordance with Subsection (3) or (4) after
publication of the rule in the bulletin, the office shall publish a list of nonsubstantive changes
in the bulletin. For each nonsubstantive change, the list shall include:
(a) the affected code citation;
(b) a brief description of the change; and
(c) the date the change was made.
(6) All funds appropriated or collected for publishing the office's publications shall be
nonlapsing.
Section 23. Section 
63G-3-403
 is amended to read:
63G-3-403.
Repeal and reenactment of Utah Administrative Code.
(1) When the director determines that the Utah Administrative Code requires extensive
revision and reorganization, the office may repeal the code and reenact a new code according to
the requirements of this section.
(2) The office may:
(a) reorganize, reformat, and renumber the code;
(b) require each agency to review its rules and make any organizational or substantive
changes according to the requirements of Section 
63G-3-303
; and
(c) require each agency to prepare a brief summary of all substantive changes made by
the agency.
(3) The office may make nonsubstantive changes in the code by:
(a) adopting a uniform system of punctuation, capitalization, numbering, and wording;
(b) eliminating duplication;
(c) correcting defective or inconsistent section and paragraph structure in arrangement
of the subject matter of rules;
(d) eliminating all obsolete or redundant words;
(e) correcting obvious errors and inconsistencies in punctuation, capitalization,
numbering, referencing, and wording;
(f) changing a catchline to more accurately reflect the substance of each section, part,
rule, or title;
(g) updating or correcting annotations associated with a section, part, rule, or title; and
(h) merging or determining priority of any amendment, enactment, or repeal to the
same rule or section made effective by an agency.
(4) (a) To inform the public about the proposed code reenactment, the office shall
publish in the bulletin:
(i) notice of the code reenactment;
(ii) the date, time, and place of a public hearing where members of the public may
comment on the proposed reenactment of the code;
(iii) locations where the proposed reenactment of the code may be reviewed; and
(iv) agency summaries of substantive changes in the reenacted code.
(b) To inform the public about substantive changes in agency rules contained in the
proposed reenactment, each agency shall:
(i) make the text of their reenacted rules available:
(A) for public review during regular business hours; and
(B) in an electronic version; and
(ii) comply with the requirements of Subsection 
63G-3-301
(10).
(5) The office shall hold a public hearing on the proposed code reenactment no fewer
than 30 days nor more than 45 days after the publication required by Subsection (4)(a).
(6) The office shall distribute complete text of the proposed code reenactment without
charge to:
(a) state-designated repositories in Utah;
(b) the [
Administrative
] Rules Review and General Oversight Committee; and
(c) the Office of Legislative Research and General Counsel.
(7) The former code is repealed and the reenacted code is effective at noon on a date
designated by the office that is not fewer than 45 days nor more than 90 days after the
publication date required by this section.
(8) Repeal and reenactment of the code meets the requirements of Section 
63G-3-305
for a review of all agency rules.
Section 24. Section 
63G-3-502
 is amended to read:
63G-3-502.
Legislative reauthorization of agency rules -- Extension of rules by
governor.
(1) All grants of rulemaking power from the Legislature to a state agency in any statute
are made subject to the provisions of this section.
(2) (a) Except as provided in Subsection (2)(b), every agency rule that is in effect on
February 28 of any calendar year expires on May 1 of that year unless it has been reauthorized
by the Legislature.
(b) Notwithstanding the provisions of Subsection (2)(a), an agency's rules do not expire
if:
(i) the rule is explicitly mandated by a federal law or regulation; or
(ii) a provision of Utah's constitution vests the agency with specific constitutional
authority to regulate.
(3) (a) The [
Administrative
] Rules Review and General Oversight Committee shall
have [
omnibus legislation prepared for consideration by the Legislature during its
] 
legislation
prepared for the Legislature to consider the reauthorization of rules during its
 annual general
session.
(b) The [
omnibus
] legislation shall be substantially in the following form: "All rules of
Utah state agencies are reauthorized except for the following:".
(c) Before sending the legislation to the governor for the governor's action, the
[
Administrative
] Rules Review and General Oversight Committee may send a letter to the
governor and to the agency explaining specifically why the committee believes [
any
] 
a
 rule
should not be reauthorized.
(d) For the purpose of this section, the entire rule, a single section, or any complete
paragraph of a rule may be excepted for reauthorization in the [
omnibus
] legislation considered
by the Legislature.
(4) The [
Administrative
] Rules Review and General Oversight Committee may have
legislation prepared for consideration by the Legislature in the annual general session or a
special session regarding any rule made according to emergency rulemaking procedures
described in Section 
63G-3-304
.
(5) The Legislature's reauthorization of a rule by legislation does not constitute
legislative approval of the rule, nor is it admissible in any proceeding as evidence of legislative
intent.
(6) (a) If an agency believes that a rule that has not been reauthorized by the
Legislature or that will be allowed to expire should continue in full force and effect and is a
rule within their authorized rulemaking power, the agency may seek the governor's declaration
extending the rule beyond the expiration date.
(b) In seeking the extension, the agency shall submit a petition to the governor that
affirmatively states:
(i) that the rule is necessary; and
(ii) a citation to the source of its authority to make the rule.
(c) (i) If the governor finds that the necessity does exist, and that the agency has the
authority to make the rule, the governor may declare the rule to be extended by publishing that
declaration in the Administrative Rules Bulletin on or before April 15 of that year.
(ii) The declaration shall set forth the rule to be extended, the reasons the extension is
necessary, and a citation to the source of the agency's authority to make the rule.
(d) If the [
omnibus bill
] 
legislation
 required by Subsection (3) fails to pass both houses
of the Legislature or is found to have a technical legal defect preventing reauthorization of
administrative rules intended to be reauthorized by the Legislature, the governor may declare
all rules to be extended by publishing a single declaration in the Administrative Rules Bulletin
on or before June 15 without meeting requirements of Subsections (6)(b) and (c).
Section 25. Section 
63G-3-503
 is enacted to read:
 63G-3-503.
Agency rules oversight.
Oversight of the rulemaking process is conducted by the Rules Review and General
Oversight Committee created in Section 
36-35-502
.
Section 26. 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
created in Section 
36-35-102
; 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 Account created in Section 
26B-1-309
.
(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. Section 
78A-2-203.5
, which is renumbered from Section 36-32-206 is
renumbered and amended to read:
[
36-32-206
].
 78A-2-203.5.
Submission of court rules or proposed court
rules.
When the Supreme Court or Judicial Council submits a court rule or proposal for court
rule for public comment, the Supreme Court or Judicial Council shall submit the court rule or
proposal for court rule to publication houses that publish court rules, proposals to court rules,
case law, or other relevant information for individuals engaged in the legal profession.
Section 28. 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
created in Section 
36-35-102
; 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 Account created in Section 
26B-1-309
.
(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 29. 
Repealer.
This bill repeals:
Section 
36-32-101
,
Title.
Section 
36-32-102
,
Definitions.
Section 
36-32-201
,
Establishment of committee -- Membership -- Duties.
Section 
36-32-204
,
Committee review -- Fiscal analyst -- Powers of committee.
Section 
36-32-205
,
Findings -- Report -- Distribution of report.
Section 30. 
Effective date.
This bill takes effect on May 1, 2024.