Rep. Norm Thurston — Voting Record

Bill

Number

S.B. 154 Second Substitute (2024GS)

Sponsor

Sen. McKell, M.

Final action

Governor Signed 3/18/2024

Outcome

Became law — signed by Gov. Spencer J. Cox

Summary

What it does

• This bill:
• defines terms;
• requires independent entities to utilize best practices tools provided by the Office of the Legislative Auditor General;
• requires a consensus group comprising the Governor's Office of Planning and Budget, the state auditor, and the Office of Legislative Research and General Counsel to conduct an annual assessment of independent entities;
• requires the consensus group to provide reports to the Legislative Management Committee, governor, and an independent entity's governing body;
• requires the Legislative Management Committee to assign each report from the consensus group to an interim committee for study and possible action; and
• makes technical and conforming changes.

Every vote on this bill

Bill text

INDEPENDENT ENTITIES AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Michael K. McKell
House Sponsor: 
____________
LONG TITLE
General Description:
This bill addresses independent entities.
Highlighted Provisions:
This bill:
▸ defines terms;
▸ requires independent entities to utilize best practices tools provided by the Office of
the Legislative Auditor General;
▸ requires a consensus group comprising the Governor's Office of Planning and
Budget, the state auditor, and the Office of Legislative Research and General
Counsel to conduct an annual assessment of independent entities;
▸ requires the consensus group to provide reports to the Legislative Management
Committee, governor, and an independent entity's governing body;
▸ requires the Legislative Management Committee to assign each report from the
consensus group to an interim committee for study and possible action; and
▸ makes technical and conforming changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
ENACTS:
63H-9-101
, Utah Code Annotated 1953
63H-9-102
, Utah Code Annotated 1953
63H-9-103
, Utah Code Annotated 1953
63H-9-104
, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
63H-9-101
 is enacted to read:
CHAPTER 9. OVERSIGHT OF INDEPENDENT ENTITIES
 63H-9-101.
Definitions.
As used in this chapter:
(1) "Best practices toolbox" means the collection of resources for governmental entities
provided on the website of the Office of the Legislative Auditor General that includes a best
practice self-assessment and other resources, tools, and reports designed to help government
organizations better serve the citizens of the state.
(2) "Consensus group" means the Governor's Office of Planning and Budget, the state
auditor, and the Office of Legislative Research and General Counsel.
(3) "Executive branch agency" means an agency or administrative subunit of state
government that reports to the governor or lieutenant governor.
(4) (a) "Independent entity" means an entity that:
(i) has a public purpose relating to the state or its citizens;
(ii) is individually created by the state;
(iii) is separate from the judicial and legislative branches of state government; and
(iv) is not under the direct supervisory control of the governor.
(b) "Independent entity" does not include an entity that is:
(i) a county;
(ii) a municipality as defined in Section 
10-1-104
;
(iii) an institution of higher education as defined in Section 
53B-2-102
;
(iv) a public school as defined in Section 
53G-8-701
;
(v) a special district as defined in Section 
17B-1-102
;
(vi) a special service district as defined in Section 
17D-1-102
;
(vii) created by an interlocal agreement as described in Section 
11-13-203
; or
(viii) an elective constitutional office, including the state auditor, the state treasurer,
and the attorney general.
(c) Independent entities that are subject to the provisions of this chapter include the:
(i) Career Service Review Office created in Section 
67-19a-201
;
(ii) Capitol Preservation Board created in Section 
63C-9-201
;
(iii) Colorado River Authority created in Section 
63M-14-201
;
(iv) Heber Valley Historic Railroad Authority created in Section 
63H-4-102
;
(v) Military Installation Development Authority created in Section 
63H-1-201
;
(vi) Office of the Great Salt Lake Commissioner created in Section 
73-32-301
;
(vii) Office of Inspector General of Medicaid Services created in Section 
63A-13-201
;
(viii) Point of the Mountain State Land Authority created in Section 
11-59-201
;
(ix) Public Service Commission created in Section 
54-1-1
;
(x) School and Institutional Trust Fund Office created in Section 
53C-1-201
;
(xi) School and Institutional Trust Lands Administration created in Section 
53D-1-201
;
(xii) Utah Beef Council created in Section 
4-21-103
;
(xiii) Utah Capital Investment Corporation created in Section 
63N-6-301
;
(xiv) Utah Communications Authority created in Section 
63H-7a-201
;
(xv) Utah Dairy Commission created in Section 
4-22-103
;
(xvi) Utah Education and Telehealth Network created in Section 
53B-17-105
;
(xvii) Utah Housing Corporation created in Section 
63H-8-201
;
(xviii) Utah Inland Port Authority created in Section 
11-58-201
;
(xix) Utah Innovation Lab created in Section 
63N-20-201
;
(xx) Utah Lake Authority created in Section 
11-65-201
;
(xxi) Utah Retirement Systems created in Section 
49-11-201
; and
(xxii) Utah State Fair Park Authority created in Section 
11-68-201
.
Section 2. Section 
63H-9-102
 is enacted to read:
 63H-9-102.
Independent entity best practices.
(1) An independent entity listed in Subsection 
63H-9-101
(4)(c) shall:
(a) use the best practices toolbox to assess the independent entity at least once each
year;
(b) report the results of the assessment described in Subsection (1)(a) to the consensus
group by December 31 of each year; and
(c) cooperate with the consensus group and, upon request from the consensus group,
provide information and material pertaining to an assessment described in Section 
63H-9-103
.
(2) An independent entity may request best practice training from the Office of the
Legislative Auditor General.
Section 3. Section 
63H-9-103
 is enacted to read:
 63H-9-103.
Consensus group -- Duties -- Reports.
(1) Subject to available work capacity, the consensus group shall:
(a) each year, conduct an assessment of one or more independent entities to determine
the state's exposure to risk from each independent entity;
(b) by August 1 of each year, provide a report on each assessment conducted under
Subsection (1)(a)(i) to the Legislative Management Committee, the governor, and the
governing body of the entity that is the subject of the assessment; and
(c) upon request, consult with interim committees that the Legislative Management
Committee assigns to review assessment reports under Section 
63H-9-104
.
(2) An assessment described in Subsection (1)(a):
(a) shall include an evaluation and analysis of an independent entity's:
(i) public purpose;
(ii) relative proximity to or independence from the state;
(iii) governance structure;
(iv) financial risks and controls, so far as they pertain to state funds;
(v) oversight structure; and
(vi) exemptions from state policies, procedures, and use of resources;
(b) shall include consideration of an executive branch agency to which an independent
entity may be accountable for the purposes of:
(i) mitigating risks identified through the consensus group's assessment; and
(ii) improving the independent entity's compliance with applicable state policies and
procedures.
(3) The consensus group shall determine which independent entity or entities to assess
each year based on a consideration of:
(a) information provided in each independent entity's assessment report under Section
63H-9-102
;
(b) estimated exposure to risk from each independent entity;
(c) how recently each independent entity has been reviewed by the consensus group,
the state auditor, the Office of the Legislative Auditor General, or the Retirement and
Independent Entities Interim Committee; and
(d) any other factor the consensus group determines relevant.
(4) The consensus group shall:
(a) review each newly created entity that meets the definition of independent entity in
Subsection 
63H-9-101
(4)(a) to determine if the entity should be subject to the provisions of
this chapter;
(b) when possible, review a proposal to create a new entity that meets the definition of
independent entity to determine if the proposed entity should be subject to the provisions of
this chapter;
(c) make recommendations to the Legislature and governor concerning which entities
should be subject to the provisions of this chapter; and
(d) make recommendations to the Legislature and governor concerning any need to
modify the consensus group process or the provisions of this chapter.
(5) To fulfill the consensus group's duties under this section:
(a) the Governor's Office of Planning and Budget is responsible for:
(i) overseeing the work of the consensus group;
(ii) analyzing possible ways to mitigate risks identified through the assessment process;
and
(iii) preparing and presenting reports and recommendations required under this section;
(b) the state auditor is responsible for providing input on the consensus group's
processes in assessing risk to the state; and
(c) the Office of Legislative Research and General Counsel is responsible for providing
research and analysis concerning relevant statutes concerning an independent entity and how
comparable entities are structured in other jurisdictions.
Section 4. Section 
63H-9-104
 is enacted to read:
 63H-9-104.
Assignment and study of reports.
(1) By September 1 of each year, the Legislative Management Committee shall assign
each report provided pursuant to Section 
63H-9-103
 to an interim committee.
(2) An interim committee that is assigned a report under Subsection (1) shall:
(a) study the report during the interim committee's September interim meeting; and
(b) determine, by motion and majority vote, whether to open a committee bill file to
address issues related to the independent entity that is the subject of the report.
Section 5. 
Effective date.
This bill takes effect on May 1, 2024.