Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 475 (2025GS)

Sponsor

Rep. Walter, R. Neil

Final action

Governor Signed 3/25/2025

Outcome

Became law — signed by Gov. Spencer J. Cox

Summary

What it does

• This bill:
• directs the state auditor to annually prepare a report that states, for each entity that holds public funds, the entity's total balance of cash, cash equivalents, and investments.

Every vote on this bill

Bill text

3
67-3-1
0
Public Funds Reporting Amendments
2025 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: R. Neil Walter
Senate Sponsor: Evan J. Vickers
LONG TITLE
General Description:
This bill modifies the duties of the state auditor. 
Highlighted Provisions:
This bill:
directs the state auditor to annually prepare a report that states, for each entity that holds 
public funds, the entity's total balance of cash, cash equivalents, and investments.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
67-3-1
, as last amended by Laws of Utah 2024, Chapters 3, 158
Be it enacted by the Legislature of the state of Utah:
Section 1, Section 
67-3-1
 is amended to read:
67-3-1
. Functions and duties.
(1)
(a)
The state auditor is the auditor of public accounts and is independent of any 
executive or administrative officers of the state.
(b)
The state auditor is not limited in the selection of personnel or in the determination 
of the reasonable and necessary expenses of the state auditor's office.
(2)
The state auditor shall examine and certify annually in respect to each fiscal year, 
financial statements showing:
(a)
the condition of the state's finances;
(b)
the revenues received or accrued;
(c)
expenditures paid or accrued;
(d)
the amount of unexpended or unencumbered balances of the appropriations to the 
agencies, departments, divisions, commissions, and institutions; and
(e)
the cash balances of the funds in the custody of the state treasurer.
(3)
(a)
The state auditor shall:
(i)
audit each permanent fund, each special fund, the General Fund, and the accounts 
of any department of state government or any independent agency or public 
corporation as the law requires, as the auditor determines is necessary, or upon 
request of the governor or the Legislature;
(ii)
perform the audits in accordance with generally accepted auditing standards and 
other auditing procedures as promulgated by recognized authoritative bodies; and
(iii)
as the auditor determines is necessary, conduct the audits to determine:
(A)
honesty and integrity in fiscal affairs;
(B)
accuracy and reliability of financial statements;
(C)
effectiveness and adequacy of financial controls; and
(D)
compliance with the law.
(b)
If any state entity receives federal funding, the state auditor shall ensure that the 
audit is performed in accordance with federal audit requirements.
(c)
(i)
The costs of the federal compliance portion of the audit may be paid from an 
appropriation to the state auditor from the General Fund.
(ii)
If an appropriation is not provided, or if the federal government does not 
specifically provide for payment of audit costs, the costs of the federal compliance 
portions of the audit shall be allocated on the basis of the percentage that each 
state entity's federal funding bears to the total federal funds received by the state.
(iii)
The allocation shall be adjusted to reflect any reduced audit time required to 
audit funds passed through the state to local governments and to reflect any 
reduction in audit time obtained through the use of internal auditors working 
under the direction of the state auditor.
(4)
(a)
Except as provided in Subsection (4)(b), the state auditor shall, in addition to 
financial audits, and as the auditor determines is necessary, conduct performance and 
special purpose audits, examinations, and reviews of any entity that receives public 
funds, including a determination of any or all of the following:
(i)
the honesty and integrity of all the entity's fiscal affairs;
(ii)
whether the entity's administrators have faithfully complied with legislative intent;
(iii)
whether the entity's operations have been conducted in an efficient, effective, and 
cost-efficient manner;
(iv)
whether the entity's programs have been effective in accomplishing the intended 
objectives; and
(v)
whether the entity's management, control, and information systems are adequate, 
effective, and secure.
(b)
The auditor may not conduct performance and special purpose audits, examinations, 
and reviews of any entity that receives public funds if the entity:
(i)
has an elected auditor; and
(ii)
has, within the entity's last budget year, had the entity's financial statements or 
performance formally reviewed by another outside auditor.
(5)
The state auditor:
(a)
shall administer any oath or affirmation necessary to the performance of the duties of 
the auditor's office; and
(b)
may:
(i)
subpoena witnesses and documents, whether electronic or otherwise; and
(ii)
examine into any matter that the auditor considers necessary.
(6)
The state auditor may require all persons who have had the disposition or management 
of any property of this state or its political subdivisions to submit statements regarding 
the property at the time and in the form that the auditor requires.
(7)
The state auditor shall:
(a)
except where otherwise provided by law, institute suits in Salt Lake County in 
relation to the assessment, collection, and payment of revenues against:
(i)
persons who by any means have become entrusted with public money or property 
and have failed to pay over or deliver the money or property; and
(ii)
all debtors of the state;
(b)
collect and pay into the state treasury all fees received by the state auditor;
(c)
perform the duties of a member of all boards of which the state auditor is a member 
by the constitution or laws of the state, and any other duties that are prescribed by the 
constitution and by law;
(d)
stop the payment of the salary of any state official or state employee who:
(i)
refuses to settle accounts or provide required statements about the custody and 
disposition of public funds or other state property;
(ii)
refuses, neglects, or ignores the instruction of the state auditor or any controlling 
board or department head with respect to the manner of keeping prescribed 
accounts or funds; or
(iii)
fails to correct any delinquencies, improper procedures, and errors brought to the 
official's or employee's attention;
(e)
establish accounting systems, methods, and forms for public accounts in all taxing or 
fee-assessing units of the state in the interest of uniformity, efficiency, and economy;
(f)
superintend the contractual auditing of all state accounts;
(g)
subject to Subsection (8)(a), withhold state allocated funds or the disbursement of 
property taxes from a state or local taxing or fee-assessing unit, if necessary, to 
ensure that officials and employees in those taxing units comply with state laws and 
procedures in the budgeting, expenditures, and financial reporting of public funds;
(h)
subject to Subsection (9), withhold the disbursement of tax money from any county, 
if necessary, to ensure that officials and employees in the county comply with 
Section 
59-2-303.1
; and
(i)
withhold state allocated funds or the disbursement of property taxes from a local 
government entity or a limited purpose entity, as those terms are defined in Section 
67-1a-15
 if the state auditor finds the withholding necessary to ensure that the entity 
registers and maintains the entity's registration with the lieutenant governor, in 
accordance with Section 
67-1a-15
.
(8)
(a)
Except as otherwise provided by law, the state auditor may not withhold funds 
under Subsection (7)(g) until a state or local taxing or fee-assessing unit has received 
formal written notice of noncompliance from the auditor and has been given 60 days 
to make the specified corrections.
(b)
If, after receiving notice under Subsection (8)(a), a state or independent local 
fee-assessing unit that exclusively assesses fees has not made corrections to comply 
with state laws and procedures in the budgeting, expenditures, and financial reporting 
of public funds, the state auditor:
(i)
shall provide a recommended timeline for corrective actions;
(ii)
may prohibit the state or local fee-assessing unit from accessing money held by 
the state; and
(iii)
may prohibit a state or local fee-assessing unit from accessing money held in an 
account of a financial institution by filing an action in a court with jurisdiction 
under Title 78A, Judiciary and Judicial Administration, requesting an order of the 
court to prohibit a financial institution from providing the fee-assessing unit 
access to an account.
(c)
The state auditor shall remove a limitation on accessing funds under Subsection (8)(b) 
upon compliance with state laws and procedures in the budgeting, expenditures, and 
financial reporting of public funds.
(d)
If a local taxing or fee-assessing unit has not adopted a budget in compliance with 
state law, the state auditor:
(i)
shall provide notice to the taxing or fee-assessing unit of the unit's failure to 
comply;
(ii)
may prohibit the taxing or fee-assessing unit from accessing money held by the 
state; and
(iii)
may prohibit a taxing or fee-assessing unit from accessing money held in an 
account of a financial institution by:
(A)
contacting the taxing or fee-assessing unit's financial institution and 
requesting that the institution prohibit access to the account; or
(B)
filing an action in a court with jurisdiction under Title 78A, Judiciary and 
Judicial Administration, requesting an order of the court to prohibit a financial 
institution from providing the taxing or fee-assessing unit access to an account.
(e)
If the local taxing or fee-assessing unit adopts a budget in compliance with state law, 
the state auditor shall eliminate a limitation on accessing funds described in 
Subsection (8)(d).
(9)
The state auditor may not withhold funds under Subsection (7)(h) until a county has 
received formal written notice of noncompliance from the auditor and has been given 60 
days to make the specified corrections.
(10)
(a)
The state auditor may not withhold funds under Subsection (7)(i) until the state 
auditor receives a notice of non-registration, as that term is defined in Section 
67-1a-15
.
(b)
If the state auditor receives a notice of non-registration, the state auditor may 
prohibit the local government entity or limited purpose entity, as those terms are 
defined in Section 
67-1a-15
, from accessing:
(i)
money held by the state; and
(ii)
money held in an account of a financial institution by:
(A)
contacting the entity's financial institution and requesting that the institution 
prohibit access to the account; or
(B)
filing an action in a court with jurisdiction under Title 78A, Judiciary and 
Judicial Administration, requesting an order of the court to prohibit a financial 
institution from providing the entity access to an account.
(c)
The state auditor shall remove the prohibition on accessing funds described in 
Subsection (10)(b) if the state auditor received a notice of registration, as that term is 
defined in Section 
67-1a-15
, from the lieutenant governor.
(11)
Notwithstanding Subsection (7)(g), (7)(h), (7)(i), (8)(b), (8)(d), or (10)(b), the state 
auditor:
(a)
shall authorize a disbursement by a local government entity or limited purpose entity, 
as those terms are defined in Section 
67-1a-15
, or a state or local taxing or 
fee-assessing unit if the disbursement is necessary to:
(i)
avoid a major disruption in the operations of the local government entity, limited 
purpose entity, or state or local taxing or fee-assessing unit; or
(ii)
meet debt service obligations; and
(b)
may authorize a disbursement by a local government entity, limited purpose entity, 
or state or local taxing or fee-assessing unit as the state auditor determines is 
appropriate.
(12)
(a)
The state auditor may seek relief under the Utah Rules of Civil Procedure to take 
temporary custody of public funds if an action is necessary to protect public funds 
from being improperly diverted from their intended public purpose.
(b)
If the state auditor seeks relief under Subsection (12)(a):
(i)
the state auditor is not required to exhaust the procedures in Subsection (7) or (8); 
and
(ii)
the state treasurer may hold the public funds in accordance with Section 
67-4-1
 if 
a court orders the public funds to be protected from improper diversion from their 
public purpose.
(13)
The state auditor shall:
(a)
establish audit guidelines and procedures for audits of local mental health and 
substance abuse authorities and their contract providers, conducted pursuant to Title 
17, Chapter 43, Part 2, Local Substance Abuse Authorities, Title 17, Chapter 43, Part 
3, Local Mental Health Authorities, Title 26B, Chapter 5, Health Care - Substance 
Use and Mental Health, and Title 51, Chapter 2a, Accounting Reports from Political 
Subdivisions, Interlocal Organizations, and Other Local Entities Act; and
(b)
ensure that those guidelines and procedures provide assurances to the state that:
(i)
state and federal funds appropriated to local mental health authorities are used for 
mental health purposes;
(ii)
a private provider under an annual or otherwise ongoing contract to provide 
comprehensive mental health programs or services for a local mental health 
authority is in compliance with state and local contract requirements and state and 
federal law;
(iii)
state and federal funds appropriated to local substance abuse authorities are used 
for substance abuse programs and services; and
(iv)
a private provider under an annual or otherwise ongoing contract to provide 
comprehensive substance abuse programs or services for a local substance abuse 
authority is in compliance with state and local contract requirements, and state and 
federal law.
(14)
(a)
The state auditor may, in accordance with the auditor's responsibilities for 
political subdivisions of the state as provided in Title 51, Chapter 2a, Accounting 
Reports from Political Subdivisions, Interlocal Organizations, and Other Local 
Entities Act, initiate audits or investigations of any political subdivision that are 
necessary to determine honesty and integrity in fiscal affairs, accuracy and reliability 
of financial statements, effectiveness, and adequacy of financial controls and 
compliance with the law.
(b)
If the state auditor receives notice under Subsection 
11-41-104
(7) from the 
Governor's Office of Economic Opportunity on or after July 1, 2024, the state auditor 
may initiate an audit or investigation of the public entity subject to the notice to 
determine compliance with Section 
11-41-103
.
(15)
(a)
The state auditor may not audit work that the state auditor performed before 
becoming state auditor.
(b)
If the state auditor has previously been a responsible official in state government 
whose work has not yet been audited, the Legislature shall:
(i)
designate how that work shall be audited; and
(ii)
provide additional funding for those audits, if necessary.
(16)
The state auditor shall:
(a)
with the assistance, advice, and recommendations of an advisory committee 
appointed by the state auditor from among special district boards of trustees, officers, 
and employees and special service district boards, officers, and employees:
(i)
prepare a Uniform Accounting Manual for Special Districts that:
(A)
prescribes a uniform system of accounting and uniform budgeting and 
reporting procedures for special districts under Title 17B, Limited Purpose 
Local Government Entities - Special Districts, and special service districts 
under Title 17D, Chapter 1, Special Service District Act;
(B)
conforms with generally accepted accounting principles; and
(C)
prescribes reasonable exceptions and modifications for smaller districts to the 
uniform system of accounting, budgeting, and reporting;
(ii)
maintain the manual under this Subsection (16)(a) so that the manual continues to 
reflect generally accepted accounting principles;
(iii)
conduct a continuing review and modification of procedures in order to improve 
them;
(iv)
prepare and supply each district with suitable budget and reporting forms; and
(v)
(A)
prepare instructional materials, conduct training programs, and render other 
services considered necessary to assist special districts and special service 
districts in implementing the uniform accounting, budgeting, and reporting 
procedures; and
(B)
ensure that any training described in Subsection (16)(a)(v)(A) complies with 
Title 63G, Chapter 22, State Training and Certification Requirements; and
(b)
continually analyze and evaluate the accounting, budgeting, and reporting practices 
and experiences of specific special districts and special service districts selected by 
the state auditor and make the information available to all districts.
(17)
(a)
The following records in the custody or control of the state auditor are protected 
records under Title 63G, Chapter 2, Government Records Access and Management 
Act:
(i)
records that would disclose information relating to allegations of personal 
misconduct, gross mismanagement, or illegal activity of a past or present 
governmental employee if the information or allegation cannot be corroborated by 
the state auditor through other documents or evidence, and the records relating to 
the allegation are not relied upon by the state auditor in preparing a final audit 
report;
(ii)
records and audit workpapers to the extent the workpapers would disclose the 
identity of an individual who during the course of an audit, communicated the 
existence of any waste of public funds, property, or manpower, or a violation or 
suspected violation of a law, rule, or regulation adopted under the laws of this 
state, a political subdivision of the state, or any recognized entity of the United 
States, if the information was disclosed on the condition that the identity of the 
individual be protected;
(iii)
before an audit is completed and the final audit report is released, records or 
drafts circulated to an individual who is not an employee or head of a 
governmental entity for the individual's response or information;
(iv)
records that would disclose an outline or part of any audit survey plans or audit 
program; and
(v)
requests for audits, if disclosure would risk circumvention of an audit.
(b)
The provisions of Subsections (17)(a)(i), (ii), and (iii) do not prohibit the disclosure 
of records or information that relate to a violation of the law by a governmental entity 
or employee to a government prosecutor or peace officer.
(c)
The provisions of this Subsection (17) do not limit the authority otherwise given to 
the state auditor to classify a document as public, private, controlled, or protected 
under Title 63G, Chapter 2, Government Records Access and Management Act.
(d)
(i)
As used in this Subsection (17)(d), "record dispute" means a dispute between 
the state auditor and the subject of an audit performed by the state auditor as to 
whether the state auditor may release a record, as defined in Section 
63G-2-103
, 
to the public that the state auditor gained access to in the course of the state 
auditor's audit but which the subject of the audit claims is not subject to disclosure 
under Title 63G, Chapter 2, Government Records Access and Management Act.
(ii)
The state auditor may submit a record dispute to the State Records Committee, 
created in Section 
63G-2-501
, for a determination of whether the state auditor 
may, in conjunction with the state auditor's release of an audit report, release to 
the public the record that is the subject of the record dispute.
(iii)
The state auditor or the subject of the audit may seek judicial review of a State 
Records Committee determination under Subsection (17)(d)(ii), as provided in 
Section 
63G-2-404
.
(18)
If the state auditor conducts an audit of an entity that the state auditor has previously 
audited and finds that the entity has not implemented a recommendation made by the 
state auditor in a previous audit, the state auditor shall notify the Legislative 
Management Committee through the Legislative Management Committee's audit 
subcommittee that the entity has not implemented that recommendation.
(19)
The state auditor shall, with the advice and consent of the Senate, appoint the state 
privacy officer described in Section 
67-3-13
.
(20)
Except as provided in Subsection (21), the state auditor shall report, or ensure that 
another government entity reports, on the financial, operational, and performance 
metrics for the state system of higher education and the state system of public education, 
including metrics in relation to students, programs, and schools within those systems.
(21)
(a)
Notwithstanding Subsection (20), the state auditor shall conduct regular audits of:
(i)
the scholarship granting organization for the Carson Smith Opportunity 
Scholarship Program, created in Section 
53E-7-402
;
(ii)
the State Board of Education for the Carson Smith Scholarship Program, created 
in Section 
53F-4-302
; and
(iii)
the scholarship program manager for the Utah Fits All Scholarship Program, 
created in Section 
53F-6-402
, including an analysis of the cost effectiveness of the 
program, taking into consideration the amount of the scholarship and the amount 
of state and local funds dedicated on a per-student basis within the traditional 
public education system.
(b)
Nothing in this subsection limits or impairs the authority of the State Board of 
Education to administer the programs described in Subsection (21)(a).
(22)
The state auditor shall, based on the information posted by the Office of Legislative 
Research and General Counsel under Subsection 
36-12-12.1
(2), for each policy, track 
and post the following information on the state auditor's website:
(a)
the information posted under Subsections 
36-12-12.1
(2)(a) through (e);
(b)
an indication regarding whether the policy is timely adopted, adopted late, or not 
adopted;
(c)
an indication regarding whether the policy complies with the requirements 
established by law for the policy; and
(d)
a link to the policy.
(23)
(a)
A legislator may request that the state auditor conduct an inquiry to determine 
whether a government entity, government official, or government employee has 
complied with a legal obligation directly imposed, by statute, on the government 
entity, government official, or government employee.
(b)
The state auditor may, upon receiving a request under Subsection (23)(a), conduct 
the inquiry requested.
(c)
If the state auditor conducts the inquiry described in Subsection (23)(b), the state 
auditor shall post the results of the inquiry on the state auditor's website.
(d)
The state auditor may limit the inquiry described in this Subsection (23) to a simple 
determination, without conducting an audit, regarding whether the obligation was 
fulfilled.
(24)
The state auditor shall:
(a)
ensure compliance with Title 63G, Chapter 31, Distinctions on the Basis of Sex, in 
accordance with Section 
63G-31-401
; and
(b)
report to the Legislative Management Committee, upon request, regarding the state 
auditor's actions under this Subsection (24).
(25)
The state auditor shall report compliance with Sections 
67-27-107
, 
67-27-108
, and 
67-27-109
 by:
(a)
establishing a process to receive and audit each alleged violation; and
(b)
reporting to the Legislative Management Committee, upon request, regarding the 
state auditor's findings and recommendations under this Subsection (25).
(26)
(a)
On or before January 31 each year, the state auditor shall prepare a report that 
states, for each entity that holds public funds as defined in Section 
51-7-3
, the entity's 
total balance, as of the last day of the immediately preceding fiscal year, of cash, cash 
equivalents, and investments, as those terms are defined under the standards 
established by the Governmental Accounting Standards Board.
(b)
The state auditor shall make the report described in Subsection 
(26)(a)
 publicly 
available on a website that the state auditor maintains.
Section 2. 
Effective Date.
This bill takes effect on 
May 7, 2025
.
3-6-25 5:39 PM