63G-10 - State Settlement Agreements Act

Title 63G > 63G-10

Sections (15)

General Provisions

63G-10-101 - Title.

This chapter is known as the “State Settlement Agreements Act.”

63G-10-102 - Definitions.

As used in this chapter: 63G-10-102(1) “Action settlement agreement” includes a stipulation, consent decree, settlement agreement, or any other legally binding document or representation that resolves a threatened or pending lawsuit between the state and another party by requiring the state to take legally binding action. “Action settlement agreement” includes stipulations, consent decrees, settlement agreements, and other legally binding documents or representations resolving a dispute between the state and another party when the state is required to pay money and required to take legally binding action. “Action settlement agreement” does not include: the internal process established by the Department of Transportation to resolve construction contract claims; any resolution of an employment dispute or claim made by an employee of the state of Utah against the state as employer; adjudicative orders issued by the State Tax Commission, the Public Service Commission, the Labor Commission, or the Department of Workforce Services; or the settlement of disputes arising from audits, defaults, or breaches of permits, contracts of sale, easements, or leases by the School and Institutional Trust Lands Administration. 63G-10-102(2) “Agency” means each department, commission, board, council, agency, institution, officer, corporation, fund, division, office, committee, authority, laboratory, library, unit, bureau, panel, or other administrative unit of the state. “Agency” includes the legislative branch, the judicial branch, the attorney general’s office, the State Board of Education, the Utah Board of Higher Education, the institutional councils of each higher education institution, and each higher education institution. 63G-10-102(3) “Financial settlement agreement” includes a stipulation, consent decree, settlement agreement, and any other legally binding document or representation that resolves a dispute between the state and another party exclusively by requiring the payment of money from one party to the other. “Financial settlement agreement” does not include: agreements made under the internal process established by the Department of Transportation to resolve construction contract claims; adjudicative orders issued by the State Tax Commission, Public Service Commission, Labor Commission, or the Department of Workforce Services; the settlement of disputes arising from audits, defaults, or breaches of permits, contracts of sale, easements, or leases by the School and Institutional Trust Lands Administration; or agreements made under the internal processes established by the Division of Facilities Construction and Management or by law to resolve construction contract claims made against the state by contractors or subcontractors. 63G-10-102(4) “Government entities” means the state and its political subdivisions. 63G-10-102(5) “Settlement agreement report” means a report that:

states the total amount of the settlement; states the payer of the settlement; states the recipient of the payment; summarizes the circumstances related to the settlement; and contains a copy of the settlement agreement, unless the agreement is not permitted to be disclosed due to a court order or other legal requirement.

63G-10-103 - Notice of voidableness of settlement agreements.

63G-10-103(1) Each action settlement agreement and each financial settlement agreement executed in violation of this chapter is voidable by the governor or the Legislature as provided in this chapter. 63G-10-103(2) When seeking approval of an action settlement agreement or a financial settlement agreement under this chapter, upon request the attorney general shall provide to the approving person any documents or information relevant to the recommended settlement.Information and documents shared under this section are governed by Subsection 67-5-17(6).

Financial Settlement Agreements

63G-10-201 - Governor to approve financial settlement agreements.

63G-10-201(1) Before legally binding the state by executing a financial settlement agreement that might cost government entities more than $250,000 to implement, an agency shall submit the proposed financial settlement agreement to the governor for the governor’s approval or rejection. 63G-10-201(2) The governor shall approve or reject each financial settlement agreement. 63G-10-201(3) If the governor approves the financial settlement agreement, the agency may execute the agreement. If the governor rejects the financial settlement agreement, the agency may not execute the agreement. 63G-10-201(4) If an agency executes a financial settlement agreement without obtaining the governor’s approval under this section, the governor may issue an executive order declaring the settlement agreement void. 63G-10-201(5) An agency executing an agreement under this section shall give notice of the settlement to the Legislative Management Committee by sending a settlement agreement report to the president of the Senate, the speaker of the House of Representatives, and the director of the Office of Legislative Research and General Counsel within three business days of executing the agreement.

63G-10-202 - Legislative review and approval of financial settlement agreements.

63G-10-202(1) Before legally binding the state by executing a financial settlement agreement that might cost government entities more than $1,000,000toimplement,anagencyshall:submittheproposedfinancialsettlementagreementtothegovernorforthegoverno{r}^{\prime }sapprovalorrejectionasrequiredbySection63G-10-201;andifthegovernorapprovesthefinancialsettlementagreement,submitthefinancialsettlementagreementtotheLegislativeManagementCommitteeforitsreviewandrecommendations.TheLegislativeManagementCommitteeshallreviewthefinancialsettlementagreementandmay:recommendthattheagencyexecutethefinancialsettlementagreement;recommendthattheagencyrejectthefinancialsettlementagreement;orrecommendtothegovernorthatthegovernorcallaspecialsessionoftheLegislaturetoreviewandapproveorrejectthefinancialsettlementagreement.\ast \ast 63G-10-202(2)\ast \ast Beforelegallybindingthestatebyexecutingafinancialsettlementagreementthatmightcostgovernmententitiesmorethan$2,000,000 to implement, an agency shall: upon initiation of negotiations that an agency reasonably believes to have the potential to lead to a settlement agreement:

notify the Legislature’s general counsel that negotiations have commenced; continue to keep the Legislature’s general counsel informed of material developments in the negotiation process; and permit the Legislature’s general counsel to attend the negotiations; submit the proposed financial settlement agreement to the governor for the governor’s approval or rejection as required by Section 63G-10-201; and if the governor approves the financial settlement agreement, submit the financial settlement agreement to the Legislature for its approval in an annual general session or a special session. If the Legislature approves the financial settlement agreement, the agency may execute the agreement. If the Legislature rejects the financial settlement agreement, the agency may not execute the agreement. If an agency executes a financial settlement agreement without obtaining the Legislature’s approval under this Subsection (2): the governor may issue an executive order declaring the settlement agreement void; or the Legislature may pass a joint resolution declaring the settlement agreement void.

Action Settlement Agreements

63G-10-301 - Cost evaluation of action settlement agreements.

63G-10-301(1) Before legally binding the state to an action settlement agreement that might cost the state a total of $250,000 or more to implement, inclusive of the cost of the required action and any required monetary payment, an agency shall estimate the cost of implementing the action settlement agreement and submit that cost estimate to the governor and the Legislative Management Committee. 63G-10-301(2) The Legislative Management Committee may:direct its staff to make an independent cost estimate of the cost of implementing the action settlement agreement; andaffirmatively adopt a cost estimate as the benchmark for determining which authorizations established by this part are necessary.

63G-10-302 - Governor to approve action settlement agreements.

63G-10-302(1) Before legally binding the state by executing an action settlement agreement that might cost government entities more than $250,000 to implement, inclusive of the cost of the required action and any required monetary payment, an agency shall submit the proposed settlement agreement, including all terms material to the settlement, to the governor for the governor’s approval or rejection. 63G-10-302(2) The governor shall approve or reject each action settlement agreement. 63G-10-302(3) If the governor approves the action settlement agreement, the agency may execute the agreement.If the governor rejects the action settlement agreement, the agency may not execute the agreement. 63G-10-302(4) If an agency executes an action settlement agreement without obtaining the governor’s approval under this section, the governor may issue an executive order declaring the settlement agreement void. 63G-10-302(5) An agency executing an agreement under this section shall give notice of the settlement to the Legislative Management Committee by sending a settlement agreement report to the president of the Senate, the speaker of the House of Representatives, and the director of the Office of Legislative Research and General Counsel within three business days of executing the agreement.

63G-10-303 - Legislative review and approval of action settlement agreements.

63G-10-303(1) Before legally binding the state by executing an action settlement agreement that might cost government entities more than $1,000,000toimplement,inclusiveofthecostoftherequiredactionandanyrequiredmonetarypayment,anagencyshall:submittheproposedactionsettlementagreement,includingalltermsthatarematerialtothesettlement,tothegovernorforthegoverno{r}^{\prime }sapprovalorrejectionasrequiredbySection63G-10-302;andifthegovernorapprovestheactionsettlementagreement,submittheactionsettlementagreementtotheLegislativeManagementCommitteeforitsreviewandrecommendations.TheLegislativeManagementCommitteeshallreviewtheactionsettlementagreementandmay:recommendthattheagencyexecutethesettlementagreement;recommendthattheagencyrejectthesettlementagreement;orrecommendtothegovernorthatthegovernorcallaspecialsessionoftheLegislaturetoreviewandapproveorrejectthesettlementagreement.\ast \ast 63G-10-303(2)\ast \ast Beforelegallybindingthestatebyexecutinganactionsettlementagreementthatmightcostgovernmententitiesmorethan$2,000,000 to implement, an agency shall:submit the proposed action settlement agreement, including all terms that are material to the settlement, to the governor for the governor’s approval or rejection as required by Section 63G-10-302; andif the governor approves the action settlement agreement, submit the action settlement agreement to the Legislature for its approval in an annual general session or a special session.If the Legislature approves the action settlement agreement, the agency may execute the agreement.If the Legislature rejects the action settlement agreement, the agency may not execute the agreement.If an agency executes an action settlement agreement without obtaining the Legislature’s approval under this Subsection (2):the governor may issue an executive order declaring the action settlement agreement void; orthe Legislature may pass a joint resolution declaring the action settlement agreement void.

63G-10-304 - Legislative review and approval of action settlement agreement related to election law.

63G-10-304(1) As used in this section, “election law” means:a provision of Title 20A, Election Code; ora provision relating to elections or voting contained in any portion of the Utah Constitution, the Utah Code, or a Utah administrative rule. 63G-10-304(2) Before legally binding the state by executing an action settlement agreement that might limit the application or enforcement of an election law, an agency shall submit the proposed action settlement agreement, including all terms that are material to the settlement:to the governor for the governor’s approval or rejection; andif the governor approves the proposed action settlement agreement, to the Legislative Management Committee for the committee’s review in accordance with Subsection (3).If the governor rejects the action settlement agreement the agency may not execute the agreement. 63G-10-304(3) The Legislative Management Committee shall review an action settlement agreement submitted under Subsection (2)(a)(ii) and may:recommend that the agency execute the settlement agreement;recommend that the agency reject the settlement agreement; orrefer the matter to the entire Legislature. 63G-10-304(4) If the Legislative Management Committee refers a matter to the entire Legislature under Subsection (3)(c), the agency may not execute the settlement agreement unless the Legislature approves the settlement agreement at a special session of the Legislature or a general session of the Legislature.If, under Subsection (4)(a), the Legislature approves the action settlement agreement, the agency may execute the agreement.If, under Subsection (4)(a), the Legislature rejects the action settlement agreement, the agency may not execute the agreement. 63G-10-304(5) If an agency executes an action settlement agreement without complying with, and waiting for completion of the action described in, the applicable provisions of this section:the governor may issue an executive order declaring the action settlement agreement void; orthe Legislature may pass a joint resolution declaring the action settlement agreement void.

Department of Transportation Settlement Agreements

63G-10-401 - Condemnation, inverse condemnation settlements involving the Department of Transportation.

63G-10-401(1) Notwithstanding the provisions of this chapter, the Department of Transportation need not obtain the approval of the governor or the Legislature for financial or action settlement agreements that resolve condemnation or inverse condemnation cases. 63G-10-401(2) Financial settlement agreements involving condemnation or inverse condemnation cases for $1,000,000to$2,000,000 over the Department of Transportation’s original appraisal shall be presented to the Transportation Commission for approval or rejection. 63G-10-401(3) Financial settlement agreements involving condemnation or inverse condemnation cases for more than $2,000,000overtheDepartmentofTransportatio{n}^{\prime }soriginalappraisalandallactionsettlementagreementsthatresolvecondemnationorinversecondemnationcasesshallbepresented:totheTransportationCommissionforapprovalorrejection;andifthefinancialoractionsettlementagreementisapprovedbytheTransportationCommission,totheLegislativeManagementCommittee.TheLegislativeManagementCommitteemayrecommendapprovalorrejectionofthefinancialoractionsettlementagreement.\ast \ast 63G-10-401(4)\ast \ast TheDepartmentofTransportationmaynotenterintoafinancialsettlementagreementthatresolvesacondemnationorinversecondemnationcaseandrequirespaymentof$1,000,000 to $2,000,000overtheDepartmentofTransportatio{n}^{\prime }soriginalappraisaluntiltheTransportationCommissionhasapprovedtheagreement.TheDepartmentofTransportationmaynotenterintoafinancialsettlementagreementthatresolvesacondemnationorinversecondemnationcaseandrequirespaymentofmorethan$2,000,000 over the Department of Transportation’s original appraisal or enter into an action settlement agreement that resolves a condemnation or inverse condemnation case until: the Transportation Commission has approved the agreement; and the Legislative Management Committee has reviewed the agreement. 63G-10-401(5) The Department of Transportation shall, for each settlement agreement approved under this section for an amount greater than $1,000,000butlessthan$2,000,000, give notice to the Legislative Management Committee by sending a settlement agreement report to the president of the Senate, the speaker of the House of Representatives, and the director of the Office of Legislative Research and General Counsel within three business days of executing the agreement.

63G-10-402 - Department of Transportation construction contract claim settlement agreement approval and review.

63G-10-402(1) As used in this section:

“Claims review board” means a committee established by the department to hear unresolved claims and make recommendations for settlement to the deputy director of the department. “Department” means the Department of Transportation created in Section 72-1-201. “Settlement agreement” includes stipulations, consent decrees, settlement agreements, or other legally binding documents or representations resolving a dispute between the department and another party when the department is required to pay money or required to take legally binding action. 63G-10-402(2) The department shall obtain the approval of the Transportation Commission or the governor or review by the Legislative Management Committee of a settlement agreement that involves a construction contract claim in accordance with this section. 63G-10-402(3) A construction contract claim settlement agreement that is being recommended by the department’s claims review board that might cost government entities more than $250,000toimplementshallbepresentedtotheTransportationCommissionforapprovalorrejection.\ast \ast 63G-10-402(4)\ast \ast Aconstructioncontractclaimsettlementagreementthatisbeingrecommendedbythedepartmen{t}^{\prime }sclaimsreviewboardthatmightcostgovernmententitiesmorethan$1,000,000 to implement shall be presented:

to the Transportation Commission for approval or rejection; and to the governor for approval or rejection. 63G-10-402(5) A construction contract claim settlement agreement that is being recommended by the department’s claims review board that might cost government entities more than $2,000,000toimplementshallbepresented:totheTransportationCommissionforapprovalorrejection;tothegovernorforapprovalorrejection;andiftheconstructioncontractclaimsettlementagreementisapprovedbytheTransportationCommissionandthegovernor,totheLegislativeManagementCommittee.TheLegislativeManagementCommitteemayrecommendapprovalorrejectionoftheconstructioncontractclaimsettlementagreement.\ast \ast 63G-10-402(6)\ast \ast Thedepartmentmaynotenterintoaconstructioncontractclaimsettlementagreementthatisbeingrecommendedbythedepartmen{t}^{\prime }sclaimsreviewboardthatmightcostgovernmententitiesmorethan$250,000 to implement until the Transportation Commission has approved the agreement. The department may not enter into a construction contract claim settlement agreement that is being recommended by the department’s claims review board that might cost government entities more than $1,000,000toimplementuntiltheTransportationCommissionandthegovernorhaveapprovedtheagreement.Thedepartmentmaynotenterintoaconstructioncontractclaimsettlementagreementthatisbeingrecommendedbythedepartmen{t}^{\prime }sclaimsreviewboardthatmightcostgovernmententitiesmorethan$2,000,000 to implement until: the Transportation Commission has approved the agreement; the governor has approved the agreement; and the Legislative Management Committee has reviewed the agreement. 63G-10-402(7) The department shall, for each settlement agreement approved under this section for an amount greater than $250,000butlessthan$2,000,000, give notice to the Legislative Management Committee by sending a settlement agreement report to the president of the Senate, the speaker of the House of Representatives, and the director of the Office of Legislative Research and General Counsel within three business days of executing the agreement.

63G-10-403 - Department of Transportation bid or request for proposals protest settlement agreement approval and review.

63G-10-403(1) As used in this section:

“Department” means the Department of Transportation created in Section 72-1-201. “Settlement agreement” includes stipulations, consent decrees, settlement agreements, or other legally binding documents or representations resolving a dispute between the department and another party when the department is required to pay money or required to take legally binding action. 63G-10-403(2) The department shall obtain the approval of the Transportation Commission or the governor or review by the Legislative Management Committee of a settlement agreement that involves a bid or request for proposal protest in accordance with this section. 63G-10-403(3) A settlement agreement that is being settled by the department as part of a bid or request for proposal protest, in accordance with Subsection 63G-6a-1602(8), that might cost government entities more than $250,000toimplementshallbepresentedtotheTransportationCommissionforapprovalorrejection.\ast \ast 63G-10-403(4)\ast \ast Asettlementagreementthatisbeingsettledbythedepartmentaspartofabidorrequestforproposalprotest,inaccordancewithSubsection63G-6a-1602(8),thatmightcostgovernmententitiesmorethan$1,000,000 to implement shall be presented:

to the Transportation Commission for approval or rejection; and to the governor for approval or rejection. 63G-10-403(5) A settlement agreement that is being settled by the department as part of a bid or request for proposal protest, in accordance with Subsection 63G-6a-1602(8), that might cost government entities more than $2,000,000toimplementshallbepresented:totheTransportationCommissionforapprovalorrejection;tothegovernorforapprovalorrejection;andifthesettlementagreementisapprovedbytheTransportationCommissionandthegovernor,totheLegislativeManagementCommittee.TheLegislativeManagementCommitteemayrecommendapprovalorrejectionofthesettlementagreement.\ast \ast 63G-10-403(6)\ast \ast Thedepartmentmaynotenterintoasettlementagreementthatresolvesabidorrequestforproposalprotest,inaccordancewithSubsection63G-6a-1602(8),thatmightcostgovernmententitiesmorethan$250,000 to implement until the Transportation Commission has approved the agreement. The department may not enter into a settlement agreement that resolves a bid or request for proposal protest, in accordance with Subsection 63G-6a-1602(8), that might cost government entities more than $1,000,000toimplementuntiltheTransportationCommissionandthegovernorhaveapprovedtheagreement.Thedepartmentmaynotenterintoasettlementagreementthatresolvesabidorrequestforproposalprotest,inaccordancewithSubsection63G-6a-1602(8),thatmightcostgovernmententitiesmorethan$2,000,000 to implement until: the Transportation Commission has approved the agreement; the governor has approved the agreement; and the Legislative Management Committee has reviewed the agreement. 63G-10-403(7) The department shall, for each settlement agreement approved under this section for an amount greater than $250,000butlessthan$2,000,000, give notice to the Legislative Management Committee by sending a settlement agreement report to the president of the Senate, the speaker of the House of Representatives, and the director of the Office of Legislative Research and General Counsel within three business days of executing the agreement.

Risk Management Fund Settlement Agreements

63G-10-501 - Definitions.

As used in this part: 63G-10-501(1) “Executive director” means the individual appointed under Section 63A-1-105 as the executive director of the Department of Government Operations, created in Section 63A-1-104. 63G-10-501(2) “Risk management fund” means the fund created in Section 63A-4-201. 63G-10-501(3) “Risk manager” means the state risk manager appointed under Section 63A-4-101.5. 63G-10-501(4) “Settlement amount” means the total cost to implement:an action settlement as defined in Section 63G-10-102, including the cost of the required action and any required monetary payment; ora financial settlement as defined in Section 63G-10-102.

63G-10-502 - Application of this part.

The authority required for the risk manager to settle a claim for which the risk management fund may be liable is governed exclusively by this part.

63G-10-503 - Risk manager’s authority to settle a claim — Additional approvals required.

63G-10-503(1) The risk manager may compromise and settle any claim for which the risk management fund may be liable:if the settlement amount is $500,000orless,ontheriskmanage{r}^{\prime }sownauthority;ifthesettlementamountismorethan$500,000 but not more than $1,000,000,upontheapprovaloftheattorneygeneral,ortheattorneygenera{l}^{\prime }srepresentative,andtheexecutivedirector;ifthesettlementamountismorethan$1,000,000 but not more than $1,500,000,uponthegoverno{r}^{\prime }sapprovalafterreceivingapprovalunderSubsection(1)(b);ifthesettlementamountismorethan$1,500,000 but not more than $2,000,000,upontheLegislativeManagementCommitte{e}^{\prime }sapprovalafterreceivingapprovalunderSubsections(1)(b)and(c);andifthesettlementamountismorethan$2,000,000, upon the Legislature’s approval after receiving approval under Subsections (1)(b), (c), and (d). 63G-10-503(2) When seeking approval from a person under Subsection (1), the risk manager shall provide the person a list of each material term in the proposed settlement agreement. 63G-10-503(3) The risk manager shall, upon initiation of negotiations that the risk manager reasonably believes to have the potential to lead to a settlement requiring approval under Subsection (1)(d) or (e):notify the Legislature’s general counsel that negotiations have commenced;continue to keep the Legislature’s general counsel informed of material developments in the negotiation process; andpermit the Legislature’s general counsel to attend negotiations.The information that the risk manager shall provide to the Legislature’s general counsel under Subsection (3)(a) includes:the nature of the claim that is the subject of the settlement negotiations;the known facts that support the claim and the known facts that controvert the claim; andthe risk manager’s assessment of the potential liability under the claim.A document, paper, electronic data, communication, or other material that the risk manager provides to legislative general counsel in the discharge of the risk manager’s responsibility under this Subsection (3) may not be considered to be a record, as defined in Section 63G-2-103.Information provided by the risk manager to legislative general counsel under Subsection (3)(a) and a communication between the risk manager and legislative general counsel under Subsection (3)(a) shall be considered to be evidence that is subject to Rule 408 of the Utah Rules of Evidence to the fullest extent possible.Subsections (3)(c) and (d) apply regardless of whether:the risk manager acts personally under this section or through counsel or another individual acting under the risk manager’s direction; orother individuals under the direction of legislative general counsel are involved in the process described in this section. 63G-10-503(4) The risk manager shall, for each settlement agreement approved under this section for an amount greater than $250,000butlessthan$1,500,000, give notice of the settlement to the Legislative Management Committee by sending a settlement agreement report to the president of the Senate, the speaker of the House of Representatives, and the director of the Office of Legislative Research and General Counsel within three business days of executing the agreement.