Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 553 (2025GS)

Sponsor

Rep. Peterson, Val L.

Final action

House/ filed 3/7/2025

Outcome

Failed / filed without passage

Summary

What it does

• This bill:
• for direct award grants, prohibits an administering agency from using grant funds to administer the grant, unless otherwise provided in the grant appropriation's intent language;
• modifies certain reporting requirements for competitive grants; and
• makes technical and conforming changes.

Every vote on this bill

Bill text

9
63G-6b-101
63G-6b-201
63G-6b-301
63G-6b-401
State Grant Process Amendments
2025 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Val L. Peterson
Senate Sponsor: Jerry W. Stevenson
LONG TITLE
General Description:
This bill modifies provisions related to state grants.
Highlighted Provisions:
This bill:
for direct award grants, prohibits an administering agency from using grant funds to 
administer the grant, unless otherwise provided in the grant appropriation's intent 
language;
modifies certain reporting requirements for competitive grants; and
makes technical and conforming changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
This bill provides a special effective date.
Utah Code Sections Affected:
AMENDS:
63G-6b-101
, as enacted by Laws of Utah 2024, Chapter 300
63G-6b-201
, as enacted by Laws of Utah 2024, Chapter 300
63G-6b-301
, as enacted by Laws of Utah 2024, Chapter 300
63G-6b-401
, as enacted by Laws of Utah 2024, Chapter 300
Be it enacted by the Legislature of the state of Utah:
Section 1, Section 
63G-6b-101
 is amended to read:
63G-6b-101. Definitions.
As use in this chapter:
(1)
"Administering agency" means a state agency that administers a grant.
(2)
"Competitive grant" means a grant that is not a direct award grant.
(3)
"Direct award grant" means a grant that is funded by money that the Legislature intends 
the state agency to pass through to one or more recipients without a competitive process.
(4)
(a)
"Grant" means a state agency's expenditure of state money, or agreement to 
expend state money, that is:
(i)
authorized by law;
(ii)
made for a particular purpose; and
(iii)
made without acquiring, or the promise of acquiring, a procurement item in 
exchange for the expenditure.
(b)
"Grant" does not include:
(i)
a tax credit;
(ii)
an expenditure of federal money;
(iii)
public assistance, as defined in Section 
26B-9-101
;
(iv)
a loan;
(v)
a rebate;
(vi)
an incentive; or
(vii)
a claim payment.
(5)
"Grant agreement" means an agreement between an administering agency and a grant 
recipient described in Subsection 
63G-6b-201(4)
.
(5)
(6)
"Grant appropriation" means an appropriation the Legislature makes to an 
administering agency to be used for one or more grants.
(6)
(7)
"Grant period" means the time frame during which a grant recipient receives funds 
from a single grant.
(7)
(8)
"Multi-year grant" means a grant for which the grant period exceeds one year.
(8)
(9)
"Nonprofit entity" means an entity that:
(a)
operates in the state;
(b)
is not a government entity; and
(c)
is exempt from federal income taxation under Section 501(c)(3), Internal Revenue 
Code.
(9)
(10)
"Procurement item" means the same as that term is defined in Section 
63G-6a-103
.
(10)
(11)
(a)
"State agency" means a department, division, or other agency or 
instrumentality of the state.
(b)
"State agency" does not include the legislative department.
(11)
(12)
"State money" means money that is derived from state fees or state tax revenue.
Section 2, Section 
63G-6b-201
 is amended to read:
63G-6b-201. Requirements for state grants.
(1)
(a)
An administering agency shall disburse grant funds in accordance with this 
Subsection (1).
(b)
Before an administering agency disburses a grant's grant funds, the administering 
agency shall ensure that the grant recipient provides a detailed budget demonstrating 
how the grant recipient will use the grant funds.
(c)
An administering agency shall establish a distribution schedule that ensures 
accountability and responsible oversight of the use of the grant funds.
(d)
An administering agency may not:
(i)
disburse all grant funds in a single payment, unless the administering agency 
makes the single payment after the grant recipient satisfies the grant recipient's 
performance obligations under the 
agreement described in Subsection (4)
grant 
agreement
; or
(ii)
make a grant recipient's final disbursement before the grant recipient delivers the 
report described in Subsection (3).
(2)
For a multi-year grant:
(a)
the grant period may not exceed five years; and
(b)
in the final quarter of each year of the grant period, excluding the final year, the grant 
recipient shall deliver to the administering agency a report that details the grant 
recipient's progress towards fulfilling the grant's purpose, including the annual 
deliverables and performance metrics described in the agreement made in accordance 
with Subsection (4).
(3)
An administering agency may not make the final grant funds disbursement until:
(a)
the grant recipient delivers to the administering agency a final report that details the 
extent to which the grant recipient fulfilled the grant's purpose, including the 
deliverables and performance metrics described in the 
agreement made in 
accordance with Subsection (4)
grant agreement
; and
(b)
the administering agency determines that the grant recipient satisfactorily produced 
each deliverable provided in the 
agreement described in Subsection (4)
grant 
agreement
.
(4)
Except as otherwise provided in the grant appropriation and consistent with the other 
provisions of this section, an administering agency may not disburse grant funds to a 
grant recipient before the administering agency and the grant recipient execute an 
agreement that contains:
(a)
the disbursement schedule for the grant funds;
(b)
the deliverables, reporting, and performance metrics the grant recipient will produce 
and use to demonstrate that the grant recipient used the grant funds to fulfill the 
grant's purpose;
(c)
if the grant is a multi-year grant, annual deliverables and performance metrics the 
grant recipient will produce and use to demonstrate sufficient progress towards 
fulfilling the grant's purpose;
(d)
a provision informing the grant recipient that disbursement of grant funds is subject 
to legislative appropriation; and
(e)
the grant recipient's consent to follow-up audit and clawback of the grant funds if an 
audit shows that the grant funds were inappropriately used.
(5)
In accordance with Utah Constitution, Article VI, Section 33, the legislative auditor 
general may audit the use of any grant funds.
Section 3, Section 
63G-6b-301
 is amended to read:
63G-6b-301. Direct award grant requirements.
(1)
(a)
A direct award grant is valid only if the direct award grant's grant appropriation 
identifies the recipient or class of recipients in the grant appropriation's intent 
language.
(b)
For a grant appropriation that is an ongoing appropriation to fund a multi-year grant, 
the requirement to identify the recipient or class of recipients applies each fiscal year.
(2)
If the intent language for a direct award grant's grant appropriation provides a 
disbursement schedule that is inconsistent with the 
schedule described in Section 
63G-6b-202
requirements described in Section 
63G-6b-201
, for the fiscal year in which 
the grant appropriation is made, the schedule in the intent language controls.
(3)
An administering agency may not use any portion of a direct award grant's grant 
appropriation to pay costs of administering the grant, unless otherwise provided in the 
grant appropriation's intent language.
Section 4, Section 
63G-6b-401
 is amended to read:
63G-6b-401. Competitive grant requirements.
(1)
(a)
For a competitive grant, the administering agency shall:
(i)
establish a competitive application and selection process; and
(ii)
award each competitive grant in accordance with the established process.
(b)
As part of the competitive application process, the administering agency shall require 
that each applicant disclose all other state funding the applicant receives.
(2)
Except as otherwise provided in the grant appropriation's intent language, an 
administering agency may not award a competitive grant to a recipient who has received 
a direct award grant if:
(a)
the direct award grant is for substantially the same purpose as the competitive grant; 
and
(b)
the direct award grant's grant period and the competitive grant's grant period overlap.
(3)
After
If directed in the grant appropriation's intent language, after
 an administering 
agency completes a competitive application process for a competitive grant but before 
the administering agency awards the grant, the administering agency shall report each 
grant recipient to the legislative fiscal analyst and the Governor's Office of Planning and 
Budget.
Section 5. 
Effective Date.
This bill takes effect on 
July 1, 2025
.
2-25-25 10:11 AM