63J-1 - Budgetary Procedures Act

Title 63J > 63J-1

Sections (41)

General Provisions

63J-1-101 - Title.

63J-1-101(1) This title is known as “Budgeting.” 63J-1-101(2) This chapter is known as the “Budgetary Procedures Act.”

63J-1-102 - Definitions.

As used in this chapter: 63J-1-102(1) “Agency” means a unit of accounting, typically associated with a department, division, board, council, committee, institution, office, bureau, or other similar administrative unit of state government, that includes line items and programs. 63J-1-102(2) “Budget execution plan” means a proposal submitted by an administrative unit of state government to the Division of Finance enumerating expected revenues and authorized expenditures within line items and among programs. 63J-1-102(3) “Debt service” means the money that is required annually to cover the repayment of interest and principal on state debt. 63J-1-102(4) “Dedicated credits” means collections by an agency that fund agency operations. “Dedicated credits” includes: assessments; sales of goods and materials; sales of services; permits, licenses, and other fees; fines, penalties, and forfeitures; and rental revenue. “Dedicated credits” does not include: expendable receipts; revenues otherwise designated by law for deposit into another fund or account; federal revenues and the related pass through; or revenues that are not deposited in governmental funds. 63J-1-102(5) “Expendable receipts” means collections by an agency for expenditures that are limited by a nonstate entity that provides the funds. “Expendable receipts” includes: grants; state matches for federal revenues paid by a nonstate entity; and rebates, including pharmacy rebates, that have similar restrictions on expenditures as the original program. “Expendable receipts” does not include: dedicated credits; revenues otherwise designated by law for deposit into another fund or account; federal revenues and the related pass through; or revenues that are not deposited into governmental funds. 63J-1-102(6) “Federal revenues” means collections by an agency from a federal source that are deposited into an account for expenditure by the agency. 63J-1-102(7) “Free revenue” includes:

collections that are required by law to be deposited in: the General Fund; the Income Tax Fund; the Uniform School Fund; or the Transportation Fund; collections that are not otherwise designated by law; collections that are not externally restricted; and collections that are not included in an approved budget execution plan. 63J-1-102(8) “Grant” means the same as that term is defined in Section 63J-7-101. 63J-1-102(9) “Item of appropriation” means an authorization of expenditure contained in legislation that appropriates funds and includes the following: the name of the agency and line item to which authorization is granted; and sources of finance from which authorization is granted and associated amounts authorized. “Item of appropriation” also includes: a schedule of programs; intent language; approved full-time equivalent employment; authorized capital outlay; and other conditions of appropriation. 63J-1-102(10) “Line item” means a unit of accounting, typically representing an administrative unit of state government within an agency, that contains one or more programs. 63J-1-102(11) “Major revenue types” means:

free revenue; federal revenue; restricted revenue; dedicated credits; and expendable receipts. 63J-1-102(12) “Program” means a unit of accounting included on a schedule of programs within a line item used to track budget authorizations, collections, and expenditures on specific purposes or functions. 63J-1-102(13) “Restricted revenue” means collections that are:

deposited, by law, into a separate fund, subfund, or account; and designated for a specific program or purpose. 63J-1-102(14) “Schedule of programs” means a list of programs and associated authorization amounts within an item of appropriation.

63J-1-103 - Agency exempt from act.

The Utah Housing Corporation is exempt from this act.

63J-1-104 - Revenue types — Disposition of free revenue and restricted revenue.

63J-1-104(1) The Division of Finance shall: account for revenues in accordance with generally accepted accounting principles; and use the major revenue types in internal accounting. Each agency shall: use the major revenue types to account for revenues; deposit revenues and other public funds received by them by following the procedures and requirements of Title 51, Chapter 7, State Money Management Act; and expend revenues and public funds as required by this chapter. 63J-1-104(2) Each agency shall deposit its free revenues into the appropriate fund. An agency may expend free revenues up to the amount specifically appropriated by the Legislature. Any free revenue funds appropriated by the Legislature to an agency that remain unexpended at the end of the fiscal year lapse to the source fund unless the Legislature provides by law that those funds are nonlapsing. 63J-1-104(3) Each agency shall deposit its restricted revenues into the applicable restricted account or fund. Revenues in a restricted account or fund do not lapse to another account or fund unless otherwise specifically provided for by law or legislative appropriation. The Legislature may appropriate restricted revenues from a restricted account or fund for the specific purpose or program designated by law. If the fund equity of a restricted account or fund is insufficient to provide the accounts appropriated from it by the Legislature, the Division of Finance may reduce the appropriation to a level that ensures that the fund equity is not less than zero. Any restricted revenues appropriated by the Legislature to an agency that remain unexpended at the end of the fiscal year lapse to the applicable restricted account or fund unless the Legislature provides by law that those appropriations, or the program or line item financed by those appropriations, are nonlapsing. 63J-1-104(4) Unless otherwise specifically provided by law, when an agency has a program or line item that is funded by both free revenue and restricted revenue, an agency shall expend those revenues based upon a proration of the amounts appropriated from each of those major revenue types.

63J-1-105 - Revenue types — Disposition of dedicated credits and expendable receipts.

63J-1-105(1) Dedicated credits are subject to appropriations and the restrictions in this chapter. An agency may expend dedicated credits for any purpose within the program or line item. 63J-1-105(2) Except as provided in Subsections (3) and (4), an agency may not expend dedicated credits in excess of the amount appropriated to a line item as dedicated credits by the Legislature. 63J-1-105(3) Each agency that receives dedicated credits revenue greater than the amount appropriated to a line item by the Legislature in the annual appropriations acts may expend the excess up to 25% of the amount appropriated if the expenditure is included in a revised budget execution plan submitted as provided in Section 63J-1-209. 63J-1-105(4) Notwithstanding the requirements of Subsection (3), when an agency’s dedicated credits revenue represents over 90% of the budget of the line item for which the dedicated credits are collected, the agency may expend 100% of the excess of the amount appropriated if the agency submits a revised budget execution plan as provided in Subsection (3) and Section 63J-1-209. 63J-1-105(5) An expenditure of dedicated credits in excess of amounts appropriated to a line item as dedicated credits by the Legislature may not be used to permanently increase personnel within the agency unless:

the increase is approved by the Legislature; or the money is deposited as a dedicated credit in a line item covering tuition or federal vocational funds at an institution of higher education. 63J-1-105(6) All excess dedicated credits not received or expended in compliance with Subsection (3), (4), or (7) lapse to the General Fund or other appropriate fund as free or restricted revenue at the end of the fiscal year. The Division of Finance shall determine the appropriate fund into which the dedicated credits lapse. 63J-1-105(7) When an agency has a line item that is funded by more than one major revenue type, one of which is dedicated credits, the agency shall completely expend authorized dedicated credits within the current fiscal year and allocate unused spending authorization among other funding sources based upon a proration of the amounts appropriated from each of those major revenue types not attributable to dedicated credits, unless the Legislature has designated a portion of the dedicated credits as nonlapsing, in which case the agency shall completely expend within the current fiscal year authorized dedicated credits minus the portion of dedicated credits designated as nonlapsing, and allocate unused spending authorization among the other funding sources based upon a proration of the amounts appropriated from each of those major revenue types not attributable to dedicated credits. Nothing in Subsection (7)(a) shall be construed to allow an agency to receive and expend dedicated credits in excess of legislative appropriations to a line item without complying with Subsection (3) or (4). Each agency that receives dedicated credits shall report, to the Division of Finance, any balances remaining in those funds at the conclusion of each fiscal year. 63J-1-105(8) Each agency shall include in its annual budget request estimates of dedicated credits revenue that is identified by, collected for, or set by the agency. 63J-1-105(9) Each agency may expend expendable receipts in accordance with the terms set by a nonstate entity that provides the funds. 63J-1-105(10) Expendable receipts are not limited by appropriations. Each agency that receives expendable receipts revenue greater than the amount included for a line item by the Legislature in the annual appropriations acts may expend the excess if the expenditure is included in a revised budget execution plan submitted as provided in Section 63J-1-209. If an agency receives excess expendable receipts revenue that is more than 25% greater than the amount included for a line item by the Legislature in the annual appropriations acts, the agency shall report the excess amount, the source of the expendable receipts, and the purpose for which the expendable receipts will be expended to the Governor’s Office of Planning and Budget, the legislative fiscal analyst, and the Executive Appropriations Committee within 60 days of submitting a revised budget execution plan as provided in Section 63J-1-209.

Budget Process, Appropriations, and Expenditures

63J-1-201 - Governor’s proposed budget to Legislature — Contents — Preparation — Appropriations based on current tax laws and not to exceed estimated revenues.

63J-1-201(1) The governor shall deliver, not later than 30 days before the date the Legislature convenes in the annual general session, a confidential draft copy of the governor’s proposed budget recommendations to the Office of the Legislative Fiscal Analyst according to the requirements of this section. 63J-1-201(2) When submitting a proposed budget, the governor shall, within the first three days of the annual general session of the Legislature, submit to the presiding officer of each house of the Legislature:a proposed budget for the ensuing fiscal year;a schedule for all of the proposed changes to appropriations in the proposed budget, with each change clearly itemized and classified; andas applicable, a document showing proposed changes in estimated revenues that are based on changes in state tax laws or rates.The proposed budget shall include:a projection of:estimated revenues by major tax type;15-year trends for each major tax type;estimated receipts of federal funds;15-year trends for federal fund receipts; andappropriations for the next fiscal year;the source of changes to all direct, indirect, and in-kind matching funds for all federal grants or assistance programs included in the budget;changes to debt service;a plan of proposed changes to appropriations and estimated revenues for the next fiscal year that is based upon the current fiscal year state tax laws and rates and considers projected changes in federal grants or assistance programs included in the budget;an itemized estimate of the proposed changes to appropriations for:the legislative department as certified to the governor by the president of the Senate and the speaker of the House;the executive department;the judicial department as certified to the governor by the state court administrator;changes to salaries payable by the state under the Utah Constitution or under law for lease agreements planned for the next fiscal year; andall other changes to ongoing or one-time appropriations, including dedicated credits, restricted funds, nonlapsing balances, grants, and federal funds;for each line item, the average annual dollar amount of staff funding associated with all positions that were vacant during the last fiscal year;deficits or anticipated deficits;the recommendations for each state agency for new full-time employees for the next fiscal year, which shall also be provided to the director of the Division of Facilities Construction and Management as required by Subsection 63A-5b-501(3);any explanation that the governor may desire to make as to the important features of the budget and any suggestion as to methods for the reduction of expenditures or increase of the state’s revenue; andinformation detailing certain fee increases as required by Section 63J-1-504. 63J-1-201(3) Except as provided in Subsection (3)(b), for the purpose of preparing and reporting the proposed budget, the governor:shall require the proper state officials, including all public and higher education officials, all heads of executive and administrative departments and state institutions, bureaus, boards, commissions, and agencies expending or supervising the expenditure of the state money, and all institutions applying for state money and appropriations, to provide itemized estimates of changes in revenues and appropriations;may require the persons and entities subject to Subsection (3)(a)(i) to provide other information under these guidelines and at times as the governor may direct, which may include a requirement for program productivity and performance measures, where appropriate, with emphasis on outcome indicators; andmay require representatives of public and higher education, state departments and institutions, and other institutions or individuals applying for state appropriations to attend budget meetings.Subsections (3)(a)(ii) and (iii) do not apply to the judicial department or the legislative department. 63J-1-201(4) The Governor’s Office of Planning and Budget shall provide to the Office of the Legislative Fiscal Analyst, as soon as practicable, but no later than 30 days before the day on which the Legislature convenes in the annual general session, data, analysis, or requests used in preparing the governor’s budget recommendations, notwithstanding the restrictions imposed on such recommendations by available revenue.The information under Subsection (4)(a) shall include:actual revenues and expenditures for the fiscal year ending the previous June 30;estimated or authorized revenues and expenditures for the current fiscal year;requested revenues and expenditures for the next fiscal year;detailed explanations of any differences between the amounts appropriated by the Legislature in the current fiscal year and the amounts reported under Subsections (4)(b)(ii) and (iii); andother budgetary information required by the Legislature in statute.The budget information under Subsection (4)(a) shall cover:all items of appropriation, funds, and accounts included in appropriations acts for the current and previous fiscal years; andany new appropriation, fund, or account items requested for the next fiscal year.The information provided under Subsection (4)(a) may be provided as a shared record under Section 63G-2-206 as considered necessary by the Governor’s Office of Planning and Budget. 63J-1-201(5) In submitting the budget for the Department of Public Safety, the governor shall include a separate recommendation in the governor’s budget for maintaining a sufficient number of alcohol-related law enforcement officers to maintain the enforcement ratio equal to or below the number specified in Subsection 32B-1-201(2).If the governor does not include in the governor’s budget an amount sufficient to maintain the number of alcohol-related law enforcement officers described in Subsection (5)(a), the governor shall include a message to the Legislature regarding the governor’s reason for not including that amount. 63J-1-201(6) The governor may revise all estimates, except those relating to the legislative department, the judicial department, and those providing for the payment of principal and interest to the state debt and for the salaries and expenditures specified by the Utah Constitution or under the laws of the state.The estimate for the judicial department, as certified by the state court administrator, shall also be included in the budget without revision, but the governor may make separate recommendations on the estimate. 63J-1-201(7) The total appropriations requested for expenditures authorized by the budget may not exceed the estimated revenues from taxes, fees, and all other sources for the next ensuing fiscal year. 63J-1-201(8) If any item of the budget as enacted is held invalid upon any ground, the invalidity does not affect the budget itself or any other item in the budget.

63J-1-201.5 - Financial statement to be submitted annually.

The governor shall submit an audited financial statement no later than December 31 of each year that shows: 63J-1-201.5(1) the revenues and expenditures for the last fiscal year; 63J-1-201.5(2) payment and discharge of the principal and interest of the indebtedness of the state; 63J-1-201.5(3) the current assets, liabilities, and reserves, surplus or deficit, and the debts and funds of the state; 63J-1-201.5(4) an estimate of the state’s financial condition as of the beginning and the end of the period covered by the budget; and 63J-1-201.5(5) a complete analysis of lease with an option to purchase arrangements entered into by state agencies.

63J-1-205 - Revenue volatility report.

63J-1-205(1) Beginning in 2011 and continuing every three years after 2011, the Legislative Fiscal Analyst and the Governor’s Office of Planning and Budget shall submit a joint revenue volatility report to the Executive Appropriations Committee prior to the committee’s December meeting. 63J-1-205(2) The Legislative Fiscal Analyst and the Governor’s Office of Planning and Budget shall ensure that the report:

discusses the tax base and the tax revenue volatility of the revenue streams that provide the source of funding for the state budget; considers federal funding included in the state budget and any projected changes in the amount or value of federal funding; identifies the balances in the General Fund Budget Reserve Account and the Income Tax Fund Budget Reserve Account; analyzes the adequacy of the balances in the General Fund Budget Reserve Account and the Income Tax Fund Budget Reserve Account in relation to the volatility of the revenue streams and the risk of a reduction in the amount or value of federal funding; recommends changes to the deposit amounts or transfer limits established in Sections 63J-1-312 and 63J-1-313, if the Legislative Fiscal Analyst and Governor’s Office of Planning and Budget consider it appropriate to recommend changes; and presents options for a deposit mechanism linked to one or more tax sources on the basis of each tax source’s observed volatility, including: an analysis of how the options would have performed historically within the state; an analysis of how the options will perform based on the most recent revenue forecast; and recommendations for deposit mechanisms considered likely to meet the budget reserve account targets established in Sections 63J-1-312 and 63J-1-313.

63J-1-205.1 - Legislature to pay debt service first.

The Legislature shall appropriate money each fiscal year sufficient to pay the principal, premium, and interest due on the state’s outstanding general obligation bonds before making any other appropriation in the fiscal year.

63J-1-206 - Appropriations governed by chapter — Restrictions on expenditures — Transfer of funds — Exclusion.

63J-1-206(1) Except as provided in Subsections (1)(b) and (2)(e), or where expressly exempted in the appropriating act:all money appropriated by the Legislature is appropriated upon the terms and conditions set forth in this chapter; andany department, agency, or institution that accepts money appropriated by the Legislature does so subject to the requirements of this chapter.This section does not apply to:the Legislature and its committees; andthe Investigation Account of the Water Resources Construction Fund, which is governed by Section 73-10-8. 63J-1-206(2) Each item of appropriation is to be expended subject to any schedule of programs and any restriction attached to the item of appropriation, as designated by the Legislature.Each schedule of programs or restriction attached to an appropriation item:is a restriction or limitation upon the expenditure of the respective appropriation made;does not itself appropriate any money; andis not itself an item of appropriation.An appropriation or any surplus of any appropriation may not be diverted from any department, agency, institution, division, or line item to any other department, agency, institution, division, or line item.If the money appropriated to an agency to pay lease payments under the program established in Section 63A-5b-703 exceeds the amount required for the agency’s lease payments to the Division of Facilities Construction and Management, the agency may:transfer money from the lease payments line item to other line items within the agency; andretain and use the excess money for other purposes.The money appropriated subject to a schedule of programs or restriction may be used only for the purposes authorized.In order for a department, agency, or institution to transfer money appropriated to it from one program to another program, the department, agency, or institution shall revise its budget execution plan as provided in Section 63J-1-209.The procedures for transferring money between programs within a line item as provided by Subsection (2)(e) do not apply to money appropriated to the State Board of Education for the Minimum School Program or capital outlay programs created in Title 53F, Chapter 3, State Funding — Capital Outlay Programs.The state superintendent may transfer money appropriated for the programs specified in Subsection (2)(f)(i) only as provided by Section 53F-2-205. 63J-1-206(3) Notwithstanding Subsection (2)(c)(i):the state superintendent: may transfer money appropriated for: the Minimum School Program between line items in accordance with Section 53F-2-205;initial enrollment estimates for charter schools between line items in accordance with Section 53F-2-707; andshall provide the state board with information on the transfers described in Subsection (3)(a)(i) within 60 days of a transfer; andthe Utah Board of Higher Education may transfer reinvestment funds, as defined in Section 53H-8-210, to a degree-granting institution, in accordance with the process described in Section 53H-8-210; andthe Department of Government Operations may transfer money appropriated to another department, agency, institution, or division for the purpose of paying the costs of pay for performance under Section 63A-17-112. 63J-1-206(4) During fiscal years 2026 through 2029, the Utah Board of Higher Education may transfer money from the Utah Board of Higher Education’s line item for high-value careers to the operating budgets of institutions of higher education, as defined in Section 53H-1-101, in amounts that are no greater than the amount the Legislature approves.

63J-1-207 - Uniform School Fund — Appropriations.

63J-1-207(1) Appropriations made from the General Fund to the Uniform School Fund to assist in financing the state’s portion of the minimum school program, as provided by law, shall be conditioned upon available revenue. 63J-1-207(2) If revenues to the General Fund are not sufficient to permit transfers to the Uniform School Fund as provided by appropriation, the state fiscal officers shall withhold transfers from the General Fund to the Uniform School Fund during the fiscal period, as in their judgment the available revenues justify until:all other appropriations made by law have been provided for;any modifications to department and agency work programs have been made; andthe governor has approved the transfer. 63J-1-207(3) Transfers from the General Fund to the Uniform School Fund shall be made at such times as required to equalize the property levy for each fiscal year. 63J-1-207(4) If, at the end of a fiscal year, there is a deficit in the Uniform School Fund, the Division of Finance may transfer from the Income Tax Fund to the Uniform School Fund an amount equal to the deficit.

63J-1-208 - Conditions on appropriations binding.

A condition that is attached to an item of appropriation that is not inconsistent with law is binding upon the recipient of the appropriation.

63J-1-209 - Director of finance to exercise accounting control — Budget execution plans — Allotments and expenditures.

63J-1-209(1) The director of finance shall exercise accounting control over all state departments, institutions, and agencies other than the Legislature and legislative committees. 63J-1-209(2) The director shall require the head of each department to submit, by May 15 of each year, a budget execution plan for the next fiscal year. The director may require any department to submit a budget execution plan for any other period. 63J-1-209(3) The budget execution plan shall include appropriations and all other funds from any source made available to the department for its operation and maintenance for the period and program authorized by legislation that appropriates funds. 63J-1-209(4) In order to revise a budget execution plan, the department, agency, or institution seeking to revise the budget execution plan shall: develop a new budget execution plan that consists of the currently approved budget execution plan and the revision sought to be made; prepare a written justification for the new budget execution plan that sets forth the purpose and necessity of the revision; and submit the new budget execution plan and the written justification for the new budget execution plan to the Division of Finance. The Division of Finance shall process the new budget execution plan with written justification and make this information available to the Governor’s Office of Planning and Budget and the legislative fiscal analyst. 63J-1-209(5) Upon request from the Governor’s Office of Planning and Budget, the Division of Finance shall revise budget execution plans. 63J-1-209(6) Notwithstanding the requirements of Title 63J, Chapter 2, Revenue Procedures and Control Act, the aggregate of the budget execution plan revisions may not exceed the total appropriations or other funds from any source that are available to the agency line item for the fiscal year in question. 63J-1-209(7) Upon transmittal of the new budget execution plan to the entities in Subsection (4), the Division of Finance shall permit all expenditures to be made from the appropriations or other funds from any source on the basis of those budget execution plans. 63J-1-209(8) The Division of Finance shall, through statistical sampling methods or other means, audit all claims against the state for which an appropriation has been made.

63J-1-209.5 - Reporting requirements for budget execution plans for fiscal year 2021.

63J-1-209.5(1) Notwithstanding Subsection 63J-1-209(2), for the fiscal year beginning July 1, 2020, and ending June 30, 2021, the director of the Division of Finance may extend the deadline described in Subsection 63J-1-209(2)(a) for up to 45 days after the date described in Subsection 63J-1-209(2)(a). 63J-1-209.5(2) This section supersedes any conflicting provisions of Utah law.

63J-1-210 - Restrictions on agency expenditures of money — Lobbyists.

63J-1-210(1) As used in this section:

“Agency” means:

a 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; or a school, a school district, or a charter school. “Agency” includes the legislative branch, the judicial branch, the Utah Board of Higher Education, the board of trustees of each higher education institution, or a higher education institution. “Contract lobbyist” means a person who is not an employee of an agency who is hired as an independent contractor by the agency to communicate with legislators or the governor for the purpose of influencing the passage, defeat, amendment, or postponement of a legislative action or an executive action. “Executive action” means action undertaken by the governor, including signing or vetoing legislation, and action undertaken by any official in the executive branch of state government. “Legislative action” means action undertaken by the Utah Legislature or any part of it. 63J-1-210(2) An agency to which money is appropriated by the Legislature may not expend any money to pay a contract lobbyist. 63J-1-210(3) This section does not affect the provisions of Title 36, Chapter 11, Lobbyist Disclosure and Regulation Act.

63J-1-211 - Appropriating from restricted accounts.

63J-1-211(1) As used in this section, “operating deficit” means that estimated General Fund or Uniform School Fund revenues are less than budgeted for the current or next fiscal year. 63J-1-211(2) Notwithstanding any other statute that limits the Legislature’s power to appropriate from a restricted account, if the Legislature determines that an operating deficit exists, unless prohibited by federal law or court order, the Legislature may, in eliminating the deficit, appropriate money from a restricted account into the General Fund.

63J-1-212 - Duplicate payment of claims prohibited.

No claim against the state, the payment of which is provided for, shall be duplicated, and the amount of any appropriation for the payment of any such claim shall be withheld if it is covered by any other appropriation.

63J-1-213 - Appropriations from special funds or accounts — Transfer by proper official only.

Whenever appropriations are made from special funds, or a fund account, the transfer of money from those funds, or accounts, to the General Fund or any other fund for budgetary purposes shall be made by the proper state fiscal officer.

63J-1-214 - Warrants — Not to be drawn until claim processed — Redemption.

63J-1-214(1) No warrant to cover any claim against any appropriation or fund shall be drawn until such claim has been processed as provided by law. 63J-1-214(2) The state treasurer shall return all redeemed warrants to the state fiscal officer for purposes of reconciliation, post-audit and verification of the state treasurer’s fund balances.

63J-1-215 - Cash funds — Application for account — Preference for purchasing card accounts — Cash advances — Revolving fund established by law excepted — Elimination of cash funds.

63J-1-215(1) Before any new petty cash funds may be established, the commission, department, or agency requesting the fund or funds shall apply in writing to the Division of Finance and provide:

the reasons why the cash fund is needed; the amount requested; and the reasons why a purchasing card account is not sufficient to meet the needs of the commission, department, or agency. 63J-1-215(2) The Division of Finance shall review the application and make a determination that: no cash fund or purchasing card account should be established; a purchasing card account should be established; or a cash fund should be established using money in the state treasury. When making a determination under Subsection (2)(a), the Division of Finance shall recommend a purchasing card account in lieu of a cash fund unless there is significant evidence that a purchasing account is not sufficient to meet the needs of the commission, department, or agency. 63J-1-215(3) Revolving funds established by law are not subject to the provisions of this section. 63J-1-215(4) The Division of Finance is authorized to review and close cash funds if the division determines that a purchasing card account will adequately meet the needs of the commission, department, or agency.

63J-1-216 - Allotment of funds to higher education.

63J-1-216(1) The state fiscal officer may permit advances to be made from allotments to state institutions of higher education in sufficient amounts to provide necessary working bank balances to facilitate an orderly management of institutional affairs. 63J-1-216(2) State institutions of higher education shall make reports, as required by the state fiscal officer, for the expenditure of funds included in any advances.

63J-1-217 - Overexpenditure of budget by agency — Prorating budget income shortfall.

63J-1-217(1) Expenditures of departments, agencies, and institutions of state government shall be kept within revenues available for such expenditures. 63J-1-217(2) Line items of appropriation shall not be overexpended. Notwithstanding Subsection (2)(a), if an agency’s line item is overexpended at the close of a fiscal year: the director of the Division of Finance may make payments from the line item to vendors for goods or services that were received on or before June 30; and the director of the Division of Finance shall immediately reduce the agency’s line item budget in the current year by the amount of the overexpenditure. Each agency with an overexpended line item shall: prepare a written report explaining the reasons for the overexpenditure; and present the report to:

the Board of Examiners as required by Section 63G-9-301; and the Office of the Legislative Fiscal Analyst. 63J-1-217(3) As used in this Subsection (3): ” Income Tax Fund budget deficit” has the same meaning as in Section 63J-1-312; and “General Fund budget deficit” has the same meaning as in Section 63J-1-312. If an Income Tax Fund budget deficit or a General Fund budget deficit exists and the adopted estimated revenues were prepared in consensus with the Governor’s Office of Planning and Budget, the governor shall: direct state agencies to reduce commitments and expenditures by an amount proportionate to the amount of the deficiency; and direct the Division of Finance to reduce allotments to institutions of higher education by an amount proportionate to the amount of the deficiency. The governor’s directions under Subsection (3)(b) are rescinded when the Legislature rectifies the Income Tax Fund budget deficit and the General Fund budget deficit. 63J-1-217(4) A department may not receive an advance of funds that cannot be covered by anticipated revenue within the budget execution plan of the fiscal year, unless the governor allocates money from the governor’s emergency appropriations. All allocations made from the governor’s emergency appropriations shall be reported to the budget subcommittee of the Legislative Management Committee by notifying the Office of the Legislative Fiscal Analyst at least 15 days before the effective date of the allocation. Emergency appropriations shall be allocated only to support activities having existing legislative approval and appropriation, and may not be allocated to any activity or function rejected directly or indirectly by the Legislature.

63J-1-218 - Reduction in federal funds — Agencies to reduce budgets.

In any fiscal year in which federal grants to be received by state agencies, departments, divisions, or institutions are reduced below the level estimated in the appropriations acts for that year, the programs supported by those grants must be reduced commensurate with the amount of the federal reduction unless the Legislature appropriates state funds to offset the loss in federal funding.

63J-1-312 - Establishing a General Fund Budget Reserve Account — Providing for deposits and expenditures from the account — Providing for interest generated by the account.

63J-1-312(1) As used in this section:” Income Tax Fund budget deficit” means a situation where appropriations made by the Legislature from the Income Tax Fund for a fiscal year exceed the estimated revenues adopted by the Executive Appropriations Committee of the Legislature for the Income Tax Fund in that fiscal year.”General Fund appropriations” means the sum of the spending authority for a fiscal year that is:granted by the Legislature in all appropriation acts and bills; andidentified as coming from the General Fund.”General Fund budget deficit” means a situation where General Fund appropriations made by the Legislature for a fiscal year exceed the estimated revenues adopted by the Executive Appropriations Committee of the Legislature for the General Fund in that fiscal year.”General Fund revenue surplus” means a situation where actual General Fund revenues collected in a completed fiscal year exceed the estimated revenues for the General Fund for that fiscal year that were adopted by the Executive Appropriations Committee of the Legislature.”Operating deficit” means that, at the end of the fiscal year, the unassigned fund balance in the General Fund is less than zero. 63J-1-312(2) There is created within the General Fund a restricted account to be known as the General Fund Budget Reserve Account, which is designated to receive the legislative appropriations and the surplus revenue required to be deposited into the account by this section. 63J-1-312(3) Except as provided in Subsection (3)(a)(ii), at the end of any fiscal year in which the Division of Finance, in consultation with the legislative fiscal analyst and in conjunction with the completion of the annual audit by the state auditor, determines that there is a General Fund revenue surplus, the Division of Finance shall transfer 25% of the General Fund revenue surplus to the General Fund Budget Reserve Account.If the transfer of 25% of the General Fund revenue surplus to the General Fund Budget Reserve Account would cause the balance in the account to exceed 9% of General Fund appropriations for the fiscal year in which the revenue surplus occurred, the Division of Finance shall: transfer to the General Fund Budget Reserve Account only those funds necessary to ensure that the balance in the account equals 9% of General Fund appropriations for the fiscal year in which the General Fund revenue surplus occurred; andtransfer to the State Sovereignty Fund created in Section 51-13-201 the remaining amount of the 25% of the General Fund revenue surplus described in Subsection (3)(a)(i).The Division of Finance shall calculate the amount to be transferred under this Subsection (3)(a):after making the transfer of General Fund revenue surplus to the Medicaid Growth Reduction and Budget Stabilization Account, as provided in Section 63J-1-315;before transferring from the General Fund revenue surplus any other year-end contingency appropriations, year-end set-asides, or other year-end transfers required by law; andexcluding any direct legislative appropriation made to the General Fund Budget Reserve Account for the fiscal year.Except as provided in Subsection (3)(b)(ii), in addition to Subsection (3)(a)(i), if a General Fund revenue surplus exists and if, within the last 10 years, the Legislature has appropriated any money from the General Fund Budget Reserve Account that has not been replaced by appropriation or as provided in this Subsection (3)(b), the Division of Finance shall transfer up to 25% more of the General Fund revenue surplus to the General Fund Budget Reserve Account to replace the amounts appropriated, until direct legislative appropriations, if any, and transfers from the General Fund revenue surplus under this Subsection (3)(b) have replaced the appropriations from the account.If the transfer under Subsection (3)(b)(i) would cause the balance in the account to exceed 9% of General Fund appropriations for the fiscal year in which the revenue surplus occurred, the Division of Finance shall transfer only those funds necessary to ensure that the balance in the account equals 9% of General Fund appropriations for the fiscal year in which the revenue surplus occurred.The Division of Finance shall calculate the amount to be transferred under this Subsection (3)(b):after making the transfer of General Fund revenue surplus to the Medicaid Growth Reduction and Budget Stabilization Account, as provided in Section 63J-1-315;before transferring from the General Fund revenue surplus any other year-end contingency appropriations, year-end set-asides, or other year-end transfers required by law; andexcluding any direct legislative appropriation made to the General Fund Budget Reserve Account for the fiscal year.For appropriations made by the Legislature to the General Fund Budget Reserve Account, the Division of Finance shall treat those appropriations, unless otherwise specified in the appropriation, as replacement funds for appropriations made from the account if funds were appropriated from the General Fund Budget Reserve Account within the past 10 years and have not yet been replaced. 63J-1-312(4) The Legislature may appropriate money from the General Fund Budget Reserve Account only to:resolve a General Fund budget deficit, for the fiscal year in which the General Fund budget deficit occurs;pay some or all of state settlement agreements approved under Title 63G, Chapter 10, State Settlement Agreements Act;pay claims approved under Section 63G-9-304;pay retroactive tax refunds;resolve an Income Tax Fund budget deficit; orfinance an existing federally funded program or activity when:the federal funds expected to fund the federal program or activity are not available to fund the program or activity; andthe Legislature and governor concurrently determine that the program or activity is essential. 63J-1-312(5) Interest generated from investments of money in the General Fund Budget Reserve Account shall be deposited into the General Fund.

63J-1-313 - Establishing an Income Tax Fund Budget Reserve Account — Providing for deposits and expenditures from the account — Providing for interest generated by the account.

63J-1-313(1) As used in this section:” Income Tax Fund appropriations” means the sum of the spending authority for a fiscal year that is:granted by the Legislature in all appropriation acts and bills; andidentified as coming from the Income Tax Fund.” Income Tax Fund budget deficit” means a situation where appropriations made by the Legislature from the Income Tax Fund for a fiscal year exceed the estimated revenues adopted by the Executive Appropriations Committee of the Legislature for the Income Tax Fund in that fiscal year.” Income Tax Fund revenue surplus” means a situation where actual Income Tax Fund revenues collected in a completed fiscal year exceed the estimated revenues for the Income Tax Fund in that fiscal year that were adopted by the Executive Appropriations Committee of the Legislature.”Operating deficit” means that, at the end of the fiscal year, the unassigned fund balance in the Income Tax Fund is less than zero. 63J-1-313(2) There is created within the Income Tax Fund a restricted account to be known as the Income Tax Fund Budget Reserve Account, which is designated to receive the legislative appropriations and the surplus revenue required to be deposited into the account by this section. 63J-1-313(3) Except as provided in Subsection (3)(a)(ii), at the end of any fiscal year in which the Division of Finance, in consultation with the legislative fiscal analyst and in conjunction with the completion of the annual audit by the state auditor, determines that there is an Income Tax Fund revenue surplus, the Division of Finance shall transfer 25% of the Income Tax Fund revenue surplus to the Income Tax Fund Budget Reserve Account.If the transfer of 25% of the Income Tax Fund revenue surplus to the Income Tax Fund Budget Reserve Account under Subsection (3)(a)(i) would cause the balance in the account to exceed 11% of Income Tax Fund appropriations for the fiscal year in which the Income Tax Fund revenue surplus occurred, the Division of Finance shall: transfer to the Income Tax Fund Budget Reserve Account only those funds necessary to ensure that the balance in the account equals 11% of the Income Tax Fund appropriations for the fiscal year in which the Income Tax Fund revenue surplus occurred; andtransfer to the State Sovereignty Fund created in Section 51-13-201 the remaining amount of the 25% of the Income Tax Fund revenue surplus described in Subsection (3)(a)(i).The Division of Finance shall calculate the amount to be transferred under this Subsection (3)(a):before transferring from the Income Tax Fund revenue surplus any other year-end contingency appropriations, year-end set-asides, or other year-end transfers required by law; andexcluding any direct legislative appropriation made to the Income Tax Fund Budget Reserve Account for the fiscal year.Except as provided in Subsection (3)(b)(ii), in addition to Subsection (3)(a)(i), if an Income Tax Fund revenue surplus exists and if, within the last 10 years, the Legislature has appropriated any money from the Income Tax Fund Budget Reserve Account that has not been replaced by appropriation or as provided in this Subsection (3)(b), the Division of Finance shall transfer up to 25% more of the Income Tax Fund revenue surplus to the Income Tax Fund Budget Reserve Account to replace the amounts appropriated, until direct legislative appropriations, if any, and transfers from the Income Tax Fund revenue surplus under this Subsection (3)(b) have replaced the appropriations from the account.If the transfer under Subsection (3)(b)(i) would cause the balance in the account to exceed 11% of Income Tax Fund appropriations for the fiscal year in which the Income Tax Fund revenue surplus occurred, the Division of Finance shall transfer only those funds necessary to ensure that the balance in the account equals 11% of Income Tax Fund appropriations for the fiscal year in which the revenue surplus occurred.The Division of Finance shall calculate the amount to be transferred under this Subsection (3)(b):before transferring from the Income Tax Fund revenue surplus any other year-end contingency appropriations, year-end set-asides, or other year-end transfers required by law; andexcluding any direct legislative appropriation made to the Income Tax Fund Budget Reserve Account for the fiscal year.For appropriations made by the Legislature to the Income Tax Fund Budget Reserve Account, the Division of Finance shall treat those appropriations, unless specified otherwise in the appropriation, as replacement funds for appropriations made from the account if funds were appropriated from the account within the past 10 years and have not yet been replaced. 63J-1-313(4) Notwithstanding Subsection (3), if, at the end of a fiscal year, the Division of Finance determines that an operating deficit exists, the Division of Finance may reduce the transfer to the Income Tax Fund Budget Reserve Account by the amount necessary to eliminate the operating deficit. 63J-1-313(5) The Legislature may appropriate money from the Income Tax Fund Budget Reserve Account only to resolve an Income Tax Fund budget deficit. 63J-1-313(6) Interest generated from investments of money in the Income Tax Fund Budget Reserve Account shall be deposited into the Income Tax Fund.

63J-1-314(1) As used in this section, “operating deficit” means that, at the end of the fiscal year, the unassigned fund balance in the General Fund is less than zero. 63J-1-314(2) Except as provided under Subsections (3) and (4), at the end of each fiscal year, the Division of Finance shall, after the transfer of General Fund revenue surplus has been made to the Medicaid Growth Reduction and Budget Stabilization Account, as provided in Section 63J-1-315, and the General Fund Budget Reserve Account, as provided in Section 63J-1-312, transfer:for a fiscal year ending on or after June 30, 2026, to the Utah Wildfire Fund created in Section 65A-8-217, $4, 000, 000 e a c h f i sc a l ye a r u n t i l ana gg re g a t e am o u n t o f$ 20,000,000 is transferred under this Subsection (2)(a)(i); andfor a fiscal year ending after the requirements of Subsection (2)(a)(i) are met, to the Utah Wildfire Fund created in Section 65A-8-217, an amount equal to the lesser of: $4, 000, 000; or anam o u n t n ecess a ry t o mak e t h e ba l an ce in t h e U t ahWi l df i re F u n d e q u a lt o$ 70,000,000; andan amount into the State Disaster Recovery Restricted Account, created in Section 53-2a-603, from the General Fund revenue surplus as defined in Section 63J-1-312, calculated by:determining the amount of General Fund revenue surplus after the transfer to the Medicaid Growth Reduction and Budget Stabilization Account under Section 63J-1-315, the General Fund Budget Reserve Account under Section 63J-1-312, and the transfer to the Utah Wildfire Fund as described in Subsection (2)(a);calculating an amount equal to the lesser of:25% of the amount determined under Subsection (2)(b)(i); or6% of the total of the General Fund appropriation amount for the fiscal year in which the surplus occurs; andadding to the amount calculated under Subsection (2)(b)(ii) an amount equal to the lesser of:25% more of the amount described in Subsection (2)(b)(i); orthe amount necessary to replace, in accordance with this Subsection (2)(b)(iii), any amount appropriated from the State Disaster Recovery Restricted Account within 10 fiscal years before the fiscal year in which the surplus occurs if:a surplus exists; andthe Legislature appropriates money from the State Disaster Recovery Restricted Account that is not replaced by appropriation or as provided in this Subsection (2)(b)(iii). 63J-1-314(3) Notwithstanding Subsection (2), if, at the end of a fiscal year, the Division of Finance determines that an operating deficit exists, the division shall reduce the transfer to the State Disaster Recovery Restricted Account by an amount necessary to eliminate the operating deficit, up to the full amount of the transfer.If, after reducing the transfer to the State Disaster Recovery Account to zero under Subsection (3)(a), the Division of Finance determines that an operating deficit still exists, the division shall reduce the transfer to the Utah Wildfire Fund by an amount necessary to eliminate the operating deficit, up to the full amount of the transfer. 63J-1-314(4) Notwithstanding Subsection (2):for the period beginning July 1, 2015, and ending June 30, 2020, the Division of Finance shall transfer to the Local Government Emergency Response Loan Fund 25% of the amount to be transferred into the State Disaster Recovery Restricted Account as provided in Subsection (2)(b)(ii); andon and after July 1, 2020, the Division of Finance shall transfer to the Local Government Emergency Response Loan Fund 10% of the amount to be transferred into the State Disaster Recovery Restricted Account as provided in Subsection (2)(b). 63J-1-314(5) On and after July 1, 2025, once annually at the close of the fiscal year, if the balance of the State Disaster Recovery Restricted Account, created in Section 53-2a-603, exceeds $50, 000, 000, t h eD i v i s i o n o f F inan ces ha ll : re d u ce t h e ba l an ceo f t h e St a t eD i s a s t er R eco v ery R es t r i c t e d A cco u n t b y t h e l essero f : t h e am o u n tt ha t e x cee d s$ 50,000,000; or$10,000,000; and transfer to the Disaster Response, Recovery, and Mitigation Restricted Account (2)(b)the money described in Subsection (5)(a).

63J-1-315 - Medicaid Growth Reduction and Budget Stabilization Account — Transfers of Medicaid growth savings — Base budget adjustments.

63J-1-315(1) As used in this section:“Department” means the Department of Health and Human Services created in Section 26B-1-201.”Division” means the Division of Integrated Healthcare created in Section 26B-3-102.”General Fund revenue surplus” means a situation where actual General Fund revenues collected in a completed fiscal year exceed the estimated revenues for the General Fund for that fiscal year that were adopted by the Executive Appropriations Committee of the Legislature.”Medicaid growth savings” means the Medicaid growth target minus Medicaid program expenditures, if Medicaid program expenditures are less than the Medicaid growth target.”Medicaid growth target” means Medicaid program expenditures for the previous year multiplied by 1.08.”Medicaid program” is as defined in Section 26B-3-101.”Medicaid program expenditures” means total state revenue expended for the Medicaid program from the General Fund, including restricted accounts within the General Fund, during a fiscal year.”Medicaid program expenditures for the previous year” means total state revenue expended for the Medicaid program from the General Fund, including restricted accounts within the General Fund, during the fiscal year immediately preceding a fiscal year for which Medicaid program expenditures are calculated.”Operating deficit” means that, at the end of the fiscal year, the unassigned fund balance in the General Fund is less than zero.”State revenue” means revenue other than federal revenue.”State revenue expended for the Medicaid program” includes money transferred or appropriated to the Medicaid Growth Reduction and Budget Stabilization Account only to the extent the money is appropriated for the Medicaid program by the Legislature. 63J-1-315(2) There is created within the General Fund a restricted account to be known as the Medicaid Growth Reduction and Budget Stabilization Account. 63J-1-315(3) The following shall be deposited into the Medicaid Growth Reduction and Budget Stabilization Account:deposits described in Subsection (4);beginning July 1, 2024, any general funds appropriated to the department for the state plan for medical assistance or for Medicaid administration by the Division of Integrated Healthcare that are not expended by the department in the fiscal year for which the general funds were appropriated and which are not otherwise designated as nonlapsing shall lapse into the Medicaid Growth Reduction and Budget Stabilization Account;beginning July 1, 2024, any unused state funds that are associated with the Medicaid program from the Department of Workforce Services;beginning July 1, 2024, any penalties imposed and collected under:Section 17B-2a-818.5;Section 19-1-206;Section 63A-5b-607;Section 63C-9-403;Section 72-6-107.5; orSection 79-2-404; andat the close of fiscal year 2024, the Division of Finance shall transfer any existing balance in the Medicaid Restricted Account created in Section 26B-1-309 into the Medicaid Growth Reduction and Budget Stabilization Account.In addition to the deposits described in Subsection (3)(a), the Legislature may appropriate money into the Medicaid Growth Reduction and Budget Stabilization Account. 63J-1-315(4) Except as provided in Subsection (7), if, at the end of a fiscal year, there is a General Fund revenue surplus, the Division of Finance shall transfer an amount equal to Medicaid growth savings from the General Fund to the Medicaid Growth Reduction and Budget Stabilization Account.If the amount transferred is reduced to prevent an operating deficit, as provided in Subsection (7), the Legislature shall include, to the extent revenue is available, an amount equal to the reduction as an appropriation from the General Fund to the account in the base budget for the second fiscal year following the fiscal year for which the reduction was made.If, at the end of a fiscal year, there is not a General Fund revenue surplus, the Legislature shall include, to the extent revenue is available, an amount equal to Medicaid growth savings as an appropriation from the General Fund to the account in the base budget for the second fiscal year following the fiscal year for which the reduction was made.Subsections (4)(a) and (4)(b) apply only to the fiscal year in which the department implements the proposal developed under Section 26B-3-202 to reduce the long-term growth in state expenditures for the Medicaid program, and to each fiscal year after that year. 63J-1-315(5) The Division of Finance shall calculate the amount to be transferred under Subsection (4):before transferring revenue from the General Fund revenue surplus to:the General Fund Budget Reserve Account under Section 63J-1-312;the Utah Wildfire Fund created in Section 65A-8-217, as described in Section 63J-1-314; andthe State Disaster Recovery Restricted Account under Section 63J-1-314;before earmarking revenue from the General Fund revenue surplus to the Industrial Assistance Account under Section 63N-3-106; andbefore making any other year-end contingency appropriations, year-end set-asides, or other year-end transfers required by law. 63J-1-315(6) If, at the close of any fiscal year, there appears to be insufficient money to pay additional debt service for any bonded debt authorized by the Legislature, the Division of Finance may hold back from any General Fund revenue surplus money sufficient to pay the additional debt service requirements resulting from issuance of bonded debt that was authorized by the Legislature.The Division of Finance may not spend the hold back amount for debt service under Subsection (6)(a) unless and until it is appropriated by the Legislature.If, after calculating the amount for transfer under Subsection (4), the remaining General Fund revenue surplus is insufficient to cover the hold back for debt service required by Subsection (6)(a), the Division of Finance shall reduce the transfer to the Medicaid Growth Reduction and Budget Stabilization Account by the amount necessary to cover the debt service hold back.Notwithstanding Subsections (4) and (5), the Division of Finance shall hold back the General Fund balance for debt service authorized by this Subsection (6) before making any transfers to the Medicaid Growth Reduction and Budget Stabilization Account or any other designation or allocation of General Fund revenue surplus. 63J-1-315(7) Notwithstanding Subsections (4) and (5), if, at the end of a fiscal year, the Division of Finance determines that an operating deficit exists and that holding back earmarks to the Industrial Assistance Account under Section 63N-3-106, transfers to the Utah Wildfire Fund and State Disaster Recovery Restricted Account under Section 63J-1-314, transfers to the General Fund Budget Reserve Account under Section 63J-1-312, or earmarks and transfers to more than one of those accounts, in that order, does not eliminate the operating deficit, the Division of Finance may reduce the transfer to the Medicaid Growth Reduction and Budget Stabilization Account by the amount necessary to eliminate the operating deficit. 63J-1-315(8) The Legislature may appropriate money from the Medicaid Growth Reduction and Budget Stabilization Account only:for the Medicaid program; andif Medicaid program expenditures for the fiscal year for which the appropriation is made are estimated to be 108% or more of Medicaid program expenditures for the previous year; orif the amount of the appropriation is equal to or less than the balance in the Medicaid Growth Reduction and Budget Stabilization Account that comprises deposits described in Subsections (3)(a)(ii) through (v) and appropriations described in Subsection (3)(b). 63J-1-315(9) The Division of Finance shall deposit interest or other earnings derived from investment of Medicaid Growth Reduction and Budget Stabilization Account money into the General Fund.

Internal Service Funds

63J-1-410 - Internal service funds — Governance and review.

63J-1-410(1) For purposes of this section:“Agency” means a department, division, office, bureau, or other unit of state government, and includes any subdivision of an agency.”Do not replace vehicles” means a vehicle accounted for in the Division of Fleet Operations for which charges to an agency for its use do not include amounts to cover depreciation or to accumulate assets to replace the vehicle at the end of its useful life.”Internal service fund agency” means an agency that provides goods or services to other agencies of state government or to other governmental units on a capital maintenance and cost reimbursement basis, and which recovers costs through interagency billings.”Revolving loan fund” means each of the revolving loan funds defined in Section 63A-3-205. 63J-1-410(2) An internal service fund agency is not subject to this section with respect to its administration of a revolving loan fund. 63J-1-410(3) An internal service fund agency may not bill another agency for services that it provides for each internal service fund operated by the agency, unless the Legislature has:reviewed and approved each internal service fund’s budget request;reviewed and approved each internal service fund’s rates, fees, and other amounts that it charges those who use its services and included those rates, fees, and amounts in an appropriation act;approved the number of full-time positions of each internal service fund as part of the annual appropriation process;reviewed the number of full-time equivalent contract employees of each internal service fund as part of the annual appropriation process; andappropriated to the internal service fund agency each internal service fund’s estimated revenue based upon the rates and fee structure that are the basis for the estimate.If an internal service fund agency operates more than one internal service fund within the internal service fund agency, the internal service fund agency shall comply with the review and approval requirements under Subsection (3)(a) for each internal service fund.If an internal service fund agency operates an internal service fund and does not get the approvals required under Subsection (3)(a) or (4)(c), the internal service fund agency shall rebate all rates, fees, and amounts collected to those who use the services for the rates, fees, and amounts collected that were not approved under Subsection (3)(a) or (4)(c). 63J-1-410(4) An internal service fund agency may charge a rate, fee, or other amount that is less than the rate, fee, or other amount established by the Legislature in an appropriations act if the internal service fund agency first reports to the Governor’s Office of Planning and Budget and the Office of the Legislative Fiscal Analyst the internal service fund agency’s justification for reducing the rate, fee, or other amount.Except as provided in Subsections (4)(c) and (d), an internal service fund agency may not charge rates, fees, and other amounts that exceed the rates, fees, and amounts approved by the Legislature in an appropriations act.An internal service fund agency that begins a new service or introduces a new product between annual general sessions of the Legislature may, for that service or product:establish and charge an interim rate or amount;acquire contract employees, if necessary; ordo a combination of Subsections (4)(c)(i)(A) and (B).The internal service fund agency shall:submit the interim rate or amount under Subsection (4)(c)(i) to the Legislature for approval at the next annual general session; andreport any change in the number of contract employees under Subsection (4)(c)(i) to the appropriate legislative appropriations subcommittee for review.An internal service fund agency may, in a fiscal year, charge rates, fees, and other amounts that exceed the rates, fees, or amounts approved by the Legislature in an appropriations act, if:during the immediately preceding annual general session, the Legislature appropriates money to each state agency to pay for an increase in the state agency’s employee’s compensation;within 90 days after the day on which the Legislature adjourns the general session sine die, the internal service fund agency submits a proposed increased rate schedule to the rate committee established in Section 63A-1-114 that adjusts the rates, fees, and amounts approved by the Legislature to reflect the percentage increase that the Legislature appropriated for state agency employee compensation under Subsection (4)(d)(i);the rate committee approves the proposed increased rate schedule described in Subsection (4)(d)(ii) during the meeting described in Subsection 63A-1-114(4); andthe internal service fund agency uses all the revenue from the rate schedule increase under this Subsection (4)(d) to increase the internal service fund agency’s employee’s compensation in an amount equivalent to the state agency employee compensation increase described in Subsection (4)(d)(i). 63J-1-410(5) The internal service fund agency budget request shall separately identify the capital needs and the related capital budget. 63J-1-410(6) In the fiscal year that the accounting change referred to in Subsection 51-5-6(2) is implemented by the Division of Finance, the Division of Finance shall transfer equity created by that accounting change to any internal service fund agency up to the amount needed to eliminate any long-term debt and deficit working capital in the fund. 63J-1-410(7) No new internal service fund agency may be established unless reviewed and approved by the Legislature. 63J-1-410(8) Except as provided in Subsection (8)(f), an internal service fund agency may not acquire capital assets unless legislative approval for acquisition of the assets has been included in an appropriations act for the internal service fund agency.An internal service fund agency may not acquire capital assets after the transfer mandated by Subsection (6) has occurred unless the internal service fund agency has adequate working capital.The internal service fund agency shall provide working capital from the following sources in the following order:first, from operating revenues to the extent allowed by state rules and federal regulations;second, from long-term debt, subject to the restrictions of this section; andlast, from an appropriation.To eliminate negative working capital, an internal service fund agency may incur long-term debt from the General Fund or Special Revenue Funds to acquire capital assets.The internal service fund agency shall repay all long-term debt borrowed from the General Fund or Special Revenue Funds by making regular payments over the useful life of the asset according to the asset’s depreciation schedule.The Division of Finance may not allow an internal service fund agency’s borrowing to exceed 90% of the net book value of the agency’s capital assets as of the end of the fiscal year.If an internal service fund agency wishes to purchase authorized assets or enter into equipment leases that would increase its borrowing beyond 90% of the net book value of the agency’s capital assets, the agency may purchase those assets only with money appropriated from another fund, such as the General Fund or a special revenue fund.Except as provided in Subsection (8)(f)(ii), capital assets acquired through agency appropriation may not be transferred to any internal service fund agency without legislative approval.Vehicles acquired by agencies from appropriated funds or money appropriated to agencies to be used for vehicle purchases may be transferred to the Division of Fleet Operations and, when transferred, become part of the Fleet Operations Internal Service Fund.Vehicles acquired with funding from sources other than state appropriations or acquired through the federal surplus property donation program may be transferred to the Division of Fleet Operations and, when transferred, become part of the Fleet Operations Internal Service Fund.Unless otherwise approved by the Legislature, vehicles acquired under Subsection (8)(f)(iii) shall be accounted for as “do not replace” vehicles. 63J-1-410(9) The Division of Finance shall adopt policies and procedures related to the accounting for assets, liabilities, equity, revenues, expenditures, and transfers of internal service funds agencies.

63J-1-411 - Internal service funds — End of fiscal year — Unused authority for capital acquisition.

63J-1-411(1) An internal service fund agency’s authority to acquire capital assets under Subsection 63J-1-410(8)(a) shall lapse if the acquisition of the capital asset does not occur in the fiscal year in which the authorization is included in the appropriations act, unless the Legislature identifies the authority to acquire the capital asset as nonlapsing authority:

for a specific one-time project and a limited period of time in the Legislature’s initial appropriation to the agency; or in a supplemental appropriation in accordance with Subsection (2). 63J-1-411(2) An internal service fund agency’s authority to acquire capital assets may be retained as nonlapsing authorization if the internal service fund agency includes a one-time project’s list as part of the budget request that it submits to the governor and the Legislature at the annual general session of the Legislature immediately before the end of the fiscal year in which the agency may have unused capital acquisition authority. The governor: may approve some or all of the items from an agency’s one-time project’s list; and shall identify and prioritize any approved one-time projects in the budget that the governor submits to the Legislature. The Legislature: may approve some or all of the specific items from an agency’s one-time project’s list as an approved capital acquisition for an agency’s appropriation balance; shall identify any authorized one-time projects in the appropriate line item appropriation; and may prioritize one-time projects in intent language. 63J-1-411(3) An internal service fund agency shall submit a status report of outstanding nonlapsing authority to acquire capital assets and associated one-time projects to the Governor’s Office of Planning and Budget and the Legislative Fiscal Analyst’s Office with the proposed budget submitted by the governor as provided under Section 63J-1-201.

Fees

63J-1-504 - Fees — Adoption, procedure, and approval — Establishing and assessing fees without legislative approval — Report summarizing fees.

63J-1-504(1) As used in this section:“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” does not include:the Legislature or a committee or staff office of the Legislature; orthe Judiciary, as that term is defined in Section 78A-2-310.”Agency’s cost” means all of a fee agency’s direct and indirect costs and expenses for providing the goods or service for which the fee agency charges a fee or for regulating the industry in which the persons paying the fee operate, including:salaries, benefits, contracted labor costs, travel expenses, training expenses, equipment and material costs, depreciation expense, utility costs, and other overhead costs; andcosts and expenses for administering the fee.”Fee agency” means an agency that is authorized to establish and charge a service fee or a regulatory fee.”Fee agency” does not include an internal service fund agency as defined in Section 63J-1-410.”Fee schedule” means the complete list of service fees and regulatory fees charged by a fee agency and the amount of those fees.”Regulatory fee” means a fee that a fee agency charges to cover the agency’s cost of regulating the industry in which the persons paying the fee operate.”Service fee” means a fee that a fee agency charges to cover the agency’s cost of providing the goods or service for which the fee is charged. 63J-1-504(2) A fee agency that charges or intends to charge a service fee or regulatory fee shall adopt a fee schedule.A service fee or regulatory fee that a fee agency charges shall:be reasonable and fair;reflect and be based on the agency’s cost for the fee; andbe established according to a cost formula determined by the executive director of the Governor’s Office of Planning and Budget and the director of the Division of Finance in conjunction with the fee agency seeking to establish the fee. 63J-1-504(3) Except as provided in Subsection (9), a fee agency may not:set fees by rule; orcreate, change, or collect any fee unless the fee has been established according to the procedures and requirements of this section. 63J-1-504(4) Each fee agency that is proposing a new fee or proposing to change a fee shall:present each proposed fee at a public hearing, subject to the requirements of Title 52, Chapter 4, Open and Public Meetings Act;increase, decrease, or affirm each proposed fee based on the results of the public hearing;except as provided in Subsection (10), submit the fee schedule to the Legislature as part of the agency’s annual appropriations request; andmodify the fee schedule as necessary to implement the Legislature’s actions. 63J-1-504(5) A fee agency shall submit the fee agency’s fee schedule to the Legislature for the Legislature’s approval on an annual basis.The Legislature may approve, increase or decrease and approve, or reject any fee submitted to it by a fee agency in an appropriations act. 63J-1-504(6) Except as provided in Subsection (8), a fee agency may not charge a fee in an amount that is different from the amount the Legislature approved under Subsection (5). 63J-1-504(7) If a fee agency charges a fee in an amount that exceeds the amount the Legislature approved:the fee agency shall make all efforts to refund to each payor the amount the payor paid that exceeds the amount the Legislature approved; andthe Division of Finance shall transfer into the General Fund any excess collections not refunded to payors in accordance with Subsection (7)(a). 63J-1-504(8) A fee agency may charge a fee that is less than the fee established by the Legislature in an appropriations act if the fee agency first reports to the Governor’s Office of Planning and Budget and the Office of the Legislative Fiscal Analyst the fee agency’s justification for reducing the fee. 63J-1-504(9) After conducting the public hearing required by this section, a fee agency may establish and assess fees without first obtaining legislative approval if:the Legislature creates a new program that is to be funded by fees to be set by the Legislature;the new program’s effective date is before the Legislature’s next annual general session; andthe fee agency submits the fee schedule for the new program to the Legislature for its approval at a special session, if allowed in the governor’s call, or at the next annual general session of the Legislature, whichever is sooner; orthe fee agency proposes to increase or decrease an existing fee for the purpose of adding or removing a transactional fee that is charged or assessed by a non-governmental third party but is included as part of the fee charged by the fee agency;the amount of the increase or decrease in the fee is equal to the amount of the transactional fee charged or assessed by the non-governmental third party; andthe increased or decreased fee is submitted to the Legislature for the Legislature’s approval at a special session, if allowed in the governor’s call, or at the next annual session of the Legislature, whichever is sooner. 63J-1-504(10) A fee agency that intends to change any fee shall submit to the governor, as part of the agency’s annual appropriation request a list that identifies:the title or purpose of the fee;the present amount of the fee;the proposed new amount of the fee;the percent that the fee will have increased if the Legislature approves the higher fee;the estimated total annual revenue and total estimated annual revenue change that will result from the changed fee;the account or fund into which the fee will be deposited;the reason for the change in the fee;the estimated number of persons to be charged the fee;the estimated agency’s cost related to the fee;whether the fee is a service fee or a regulatory fee;whether the fee is intended to cover the agency’s cost related to the fee;whether the fee agency intends to subsidize the fee to cover the agency’s cost related to the fee and, if so, the fee agency’s justification for the subsidy; andwhether the fee agency set the fee at an amount that exceeds the agency’s cost related to the fee and, if so, the fee agency’s justification for the excess fee.The governor may review and approve, modify and approve, or reject the fee increases.The governor shall transmit the list required by Subsection (10)(a), with any modifications, to the legislative fiscal analyst with the governor’s budget recommendations.Bills approving any fee change shall be filed before the beginning of the Legislature’s annual general session, if possible. 63J-1-504(11) Except as provided in Subsection (11)(b), the School and Institutional Trust Lands Administration, established in Section 53C-1-201, is exempt from the requirements of this section.The following fees of the School and Institutional Trust Lands Administration are subject to the requirements of this section: application, assignment, amendment, affidavit for lost documents, name change, reinstatement, grazing nonuse, extension of time, partial conveyance, patent reissue, collateral assignment, electronic payment, and processing.

63J-1-505 - Payment of fees prerequisite to service — Exception.

63J-1-505(1) State and county officers required by law to charge fees may not perform any official service unless the fees prescribed for that service are paid in advance. When the fee is paid, the officer shall perform the services required. An officer is liable upon the officer’s official bond for every failure or refusal to perform an official duty when the fees are tendered. 63J-1-505(2) Except as provided in Subsection (2)(b), no fees may be charged: to the officer’s state, or any county or subdivision of the state; to any public officer acting for the state, county, or subdivision; in cases of habeas corpus; in criminal causes before final judgment; for administering and certifying the oath of office; for swearing pensioners and their witnesses; or for filing and recording bonds of public officers. Fees may be charged for payment: of recording fees for assessment area recordings in compliance with Sections 11-42-205 and 11-42a-302; of recording fees for judgments recorded in compliance with Sections 57-3-106 and 78A-7-105; and to the state engineer under Section 73-2-14.

63J-1-506 - Parking fees at court buildings.

63J-1-506(1) State-owned or leased court facilities may not charge or collect fees for parking without prior approval by the Legislature. 63J-1-506(2) The Legislature may approve, increase, decrease and approve, or reject any parking fee submitted to it by the courts.

Unused Balances

63J-1-601 - End of fiscal year — Unexpended balances — Funds not to be closed out — Pending claims — Transfer of amounts from item of appropriation — Nonlapsing accounts and funds — Institutions of higher education to report unexpended balances.

63J-1-601(1) As used in this section:

“Education grant subrecipient” means a nonfederal entity that: receives a subaward from the State Board of Education to carry out at least part of a federal or state grant program; and does not include an individual who is a beneficiary of the federal or state grant program. “Transaction control number” means the unique numerical identifier established by the Department of Health and Human Services to track each medical claim and indicates the date on which the claim is entered. 63J-1-601(2) On or before August 31 of each fiscal year, the director of the Division of Finance shall close out to the proper fund or account all remaining unexpended and unencumbered balances of appropriations made by the Legislature, except:

those funds classified under Title 51, Chapter 5, Funds Consolidation Act, as: enterprise funds; internal service funds; fiduciary funds; capital projects funds; discrete component unit funds; debt service funds; and permanent funds; those appropriations from a fund or account or appropriations to a program that are designated as nonlapsing under Section 63J-1-602.1 or 63J-1-602.2; expendable special revenue funds, unless specifically directed to close out the fund in the fund’s enabling legislation; acquisition and development funds appropriated to the Division of State Parks or the Division of Outdoor Recreation; funds encumbered to pay purchase orders issued before May 1 for capital equipment if delivery is expected before June 30; and unexpended and unencumbered balances of appropriations that meet the requirements of Section 63J-1-603. 63J-1-601(3) Liabilities and related expenses for goods and services received on or before June 30 shall be recognized as expenses due and payable from appropriations made before June 30. The liability and related expense shall be recognized within time periods established by the Division of Finance but shall be recognized not later than August 31. Liabilities and expenses not so recognized may be paid from regular departmental appropriations for the subsequent fiscal year, if these claims do not exceed unexpended and unencumbered balances of appropriations for the years in which the obligation was incurred. Amounts may not be transferred from an item of appropriation of any department, institution, or agency into the Capital Projects Fund or any other fund without the prior express approval of the Legislature. 63J-1-601(4) For purposes of this chapter, a claim processed under the authority of Title 26B, Chapter 3, Health Care - Administration and Assistance: is not a liability or an expense to the state for budgetary purposes, unless the Division of Integrated Healthcare receives the claim within the time periods established by the Division of Finance under Subsection (3)(b); and is not subject to Subsection (3)(c). The transaction control number that the Division of Integrated Healthcare records on each claim invoice is the date of receipt. 63J-1-601(5) For purposes of this chapter, a claim processed in accordance with Title 35A, Chapter 13, Utah State Office of Rehabilitation Act: is not a liability or an expense to the state for budgetary purposes, unless the Utah State Office of Rehabilitation receives the claim within the time periods established by the Division of Finance under Subsection (3)(b); and is not subject to Subsection (3)(c). The Utah State Office of Rehabilitation shall mark each claim invoice with the date on which the Utah State Office of Rehabilitation receives the claim invoice. The date described in Subsection (5)(b)(i) is the date of receipt for purposes of this section. 63J-1-601(6) For purposes of this chapter, a reimbursement request received from an education grant subrecipient: is not a liability or expense to the state for budgetary purposes, unless the State Board of Education receives the claim within the time periods described in Subsection (3)(b); and is not subject to Subsection (3)(c). The transaction control number that the State Board of Education records on a claim invoice is the date of receipt. 63J-1-601(7) Any balance from an appropriation to a state institution of higher education that remains unexpended at the end of the fiscal year shall be reported to the Division of Finance by the September 1 following the close of the fiscal year.

63J-1-602 - Nonlapsing appropriations.

63J-1-602(1) Each appropriation listed in Section 63J-1-602.1 or 63J-1-602.2 is nonlapsing. 63J-1-602(2) No appropriation from a fund or account or appropriation to a program may be treated as nonlapsing unless:it is listed in Section 63J-1-602.1 or 63J-1-602.2;it is designated in a condition of appropriation in the appropriations bill;nonlapsing authority is granted under Section 63J-1-603; orit is reviewed under Section 63J-1-904. 63J-1-602(3) Each legislative appropriations subcommittee shall review the accounts and funds that have been granted nonlapsing authority under the provisions of this section or Section 63J-1-603. 63J-1-602(4) Except as provided in Subsection (5), on or before October 1 of each calendar year, an agency shall submit to the legislative appropriations subcommittee with jurisdiction over the agency’s budget a report that describes the agency’s plan to expend any nonlapsing appropriations, including:if applicable, the results of the prior year’s planned use of the agency’s nonlapsing appropriations; andif the agency plans to save all or a portion of the agency’s nonlapsing appropriations over multiple years to pay for an anticipated expense:the estimated cost of the expense; andthe number of years until the agency will accumulate the amount required to pay for the expense. 63J-1-602(5) The State Board of Education shall submit the report described in Subsections (4)(a) and (b) on or before October 10 of each calendar year.

63J-1-602.1 - List of nonlapsing appropriations from accounts and funds.

Appropriations made from the following accounts or funds are nonlapsing: 63J-1-602.1(1) The Native American Repatriation Restricted Account created in Section 9-9-407. 63J-1-602.1(2) Certain money payable for expenses of the Pete Suazo Utah Athletic Commission, as provided under Title 9, Chapter 23, Pete Suazo Utah Athletic Commission Act. 63J-1-602.1(3) Funds collected for directing and administering the C-PACE district created in Section 11-42a-106. 63J-1-602.1(4) Money received by the Utah Inland Port Authority, as provided in Section 11-58-105. 63J-1-602.1(5) The Commerce Electronic Payment Fee Restricted Account created in Section 13-1-17. 63J-1-602.1(6) The Division of Air Quality Oil, Gas, and Mining Restricted Account created in Section 19-2a-106. 63J-1-602.1(7) The Division of Water Quality Oil, Gas, and Mining Restricted Account created in Section 19-5-126. 63J-1-602.1(8) State funds for matching federal funds in the Children’s Health Insurance Program as provided in Section 26B-3-906. 63J-1-602.1(9) Funds collected from the program fund for local health department expenses incurred in responding to a local health emergency under Section 26B-7-111. 63J-1-602.1(10) The Technology Development Restricted Account created in Section 31A-3-104. 63J-1-602.1(11) The Criminal Background Check Restricted Account created in Section 31A-3-105. 63J-1-602.1(12) The Captive Insurance Restricted Account created in Section 31A-3-304, except to the extent that Section 31A-3-304 makes the money received under that section free revenue. 63J-1-602.1(13) The Title Licensee Enforcement Restricted Account created in Section 31A-23a-415. 63J-1-602.1(14) The Health Insurance Actuarial Review Restricted Account created in Section 31A-30-115. 63J-1-602.1(15) The State Mandated Insurer Payments Restricted Account created in Section 31A-30-118. 63J-1-602.1(16) The Insurance Fraud Investigation Restricted Account created in Section 31A-31-108. 63J-1-602.1(17) The Underage Drinking Prevention Media and Education Campaign Restricted Account created in Section 32B-2-306. 63J-1-602.1(18) The School Readiness Restricted Account created in Section 35A-15-203. 63J-1-602.1(19) Money received by the Utah State Office of Rehabilitation for the sale of certain products or services, as provided in Section 35A-13-202. 63J-1-602.1(20) The Property Loss Related to Homelessness Compensation Enterprise Fund created in Section 35A-16-212. 63J-1-602.1(21) The Homeless Shelter Cities Mitigation Restricted Account created in Section 35A-16-402. 63J-1-602.1(22) The Oil and Gas Administrative Penalties Account created in Section 40-6-11. 63J-1-602.1(23) The Oil and Gas Conservation Account created in Section 40-6-14.5. 63J-1-602.1(24) The Division of Oil, Gas, and Mining Restricted account created in Section 40-6-23. 63J-1-602.1(25) The Electronic Payment Fee Restricted Account created by Section 41-1a-121 to the Motor Vehicle Division. 63J-1-602.1(26) The License Plate Restricted Account created by Section 41-1a-122. 63J-1-602.1(27) The Motor Vehicle Enforcement Division Temporary Permit Restricted Account created by Section 41-3-110 to the State Tax Commission. 63J-1-602.1(28) The State Disaster Recovery Restricted Account to the Division of Emergency Management, as provided in Section 53-2a-603. 63J-1-602.1(29) The Disaster Response, Recovery, and Mitigation Restricted Account created in Section 53-2a-1302. 63J-1-602.1(30) The Emergency Medical Services Critical Needs Account created in Section 53-2d-110. 63J-1-602.1(31) The Department of Public Safety Restricted Account to the Department of Public Safety, as provided in Section 53-3-106. 63J-1-602.1(32) The Utah Highway Patrol Aero Bureau Restricted Account created in Section 53-8-303. 63J-1-602.1(33) The DNA Specimen Restricted Account created in Section 53-10-407. 63J-1-602.1(34) The Technical Colleges Capital Projects Fund created in Section 53H-9-605. 63J-1-602.1(35) The Higher Education Capital Projects Fund created in Section 53H-9-502. 63J-1-602.1(36) A certain portion of money collected for administrative costs under the School Institutional Trust Lands Management Act, as provided under Section 53C-3-202. 63J-1-602.1(37) The Public Utility Regulatory Restricted Account created in Section 54-5-1.5, subject to Subsection 54-5-1.5(4)(d). 63J-1-602.1(38) Funds collected from a surcharge fee to provide certain licensees with access to an electronic reference library, as provided in Section 58-3a-105. 63J-1-602.1(39) Certain fines collected by the Division of Professional Licensing for violation of unlawful or unprofessional conduct that are used for education and enforcement purposes, as provided in Section 58-17b-505. 63J-1-602.1(40) Funds collected from a surcharge fee to provide certain licensees with access to an electronic reference library, as provided in Section 58-22-104. 63J-1-602.1(41) Funds collected from a surcharge fee to provide certain licensees with access to an electronic reference library, as provided in Section 58-55-106. 63J-1-602.1(42) Funds collected from a surcharge fee to provide certain licensees with access to an electronic reference library, as provided in Section 58-56-3.5. 63J-1-602.1(43) Certain fines collected by the Division of Professional Licensing for use in education and enforcement of the Security Personnel Licensing Act, as provided in Section 58-63-103. 63J-1-602.1(44) The Relative Value Study Restricted Account created in Section 59-9-105. 63J-1-602.1(45) The Cigarette Tax Restricted Account created in Section 59-14-204. 63J-1-602.1(46) Funds paid to the Division of Real Estate for the cost of a criminal background check for a mortgage loan license, as provided in Section 61-2c-202. 63J-1-602.1(47) Funds paid to the Division of Real Estate for the cost of a criminal background check for principal broker, associate broker, and sales agent licenses, as provided in Section 61-2f-204. 63J-1-602.1(48) Certain funds donated to the Department of Health and Human Services, as provided in Section 26B-1-202. 63J-1-602.1(49) Certain funds donated to the Division of Child and Family Services, as provided in Section 80-2-404. 63J-1-602.1(50) Funds collected by the Office of Administrative Rules for publishing, as provided in Section 63G-3-402. 63J-1-602.1(51) The Immigration Act Restricted Account created in Section 63G-12-103. 63J-1-602.1(52) Money received by the military installation development authority, as provided in Section 63H-1-504. 63J-1-602.1(53) The Unified Statewide 911 Emergency Service Account created in Section 63H-7a-304. 63J-1-602.1(54) The Utah Statewide Radio System Restricted Account created in Section 63H-7a-403. 63J-1-602.1(55) The Utah Capital Investment Restricted Account created in Section 63N-6-204. 63J-1-602.1(56) The Motion Picture Incentive Account created in Section 63N-8-103. 63J-1-602.1(57) Funds collected by the housing of state probationary inmates or state parole inmates, as provided in Subsection 64-13e-104(2). 63J-1-602.1(58) Certain forestry and fire control funds utilized by the Division of Forestry, Fire, and State Lands, as provided in Section 65A-8-103. 63J-1-602.1(59) The following funds or accounts created in Section 72-2-124:Transportation Investment Fund of 2005;Transit Transportation Investment Fund;Cottonwood Canyons Transportation Investment Fund;Active Transportation Investment Fund; andCommuter Rail Subaccount. 63J-1-602.1(60) The Amusement Ride Safety Restricted Account, as provided in Section 72-16-204. 63J-1-602.1(61) Certain funds received by the Office of the State Engineer for well drilling fines or bonds, as provided in Section 73-3-25. 63J-1-602.1(62) The Water Resources Conservation and Development Fund, as provided in Section 73-23-2. 63J-1-602.1(63) Award money under the State Asset Forfeiture Grant Program, as provided under Section 77-11b-403. 63J-1-602.1(64) Funds donated or paid to a juvenile court by private sources, as provided in Subsection 78A-6-203(1)(c). 63J-1-602.1(65) Fees for certificate of admission created under Section 78A-9-102. 63J-1-602.1(66) Funds collected for adoption document access as provided in Sections 81-13-103, 81-13-504, and 81-13-505. 63J-1-602.1(67) Funds collected for indigent defense as provided in Title 78B, Chapter 22, Part 4, Utah Indigent Defense Commission. 63J-1-602.1(68) The Utah Geological Survey Restricted Account created in Section 79-3-403. 63J-1-602.1(69) Revenue for golf user fees at the Wasatch Mountain State Park, Palisades State Park, and Green River State Park, as provided under Section 79-4-403. 63J-1-602.1(70) Certain funds received by the Division of State Parks from the sale or disposal of buffalo, as provided under Section 79-4-1001.

63J-1-602.2 - List of nonlapsing appropriations to programs.

Appropriations made to the following programs are nonlapsing: 63J-1-602.2(1) The Legislature and the Legislature’s committees. 63J-1-602.2(2) The State Board of Education, including all appropriations to agencies, line items, and programs under the jurisdiction of the State Board of Education, in accordance with Section 53F-9-103. 63J-1-602.2(3) The Rangeland Improvement Act created in Section 4-20-101. 63J-1-602.2(4) The Percent-for-Art Program created in Section 9-6-404. 63J-1-602.2(5) The LeRay McAllister Working Farm and Ranch Fund Program created in Title 4, Chapter 46, Part 3, LeRay McAllister Working Farm and Ranch Fund. 63J-1-602.2(6) The Utah Lake Authority created in Section 11-65-201. 63J-1-602.2(7) Dedicated credits accrued to the Utah Marriage Commission as provided under Subsection 17-66-303(2)(d)(ii). 63J-1-602.2(8) The Wildlife Land and Water Acquisition Program created in Section 23A-6-205. 63J-1-602.2(9) Sanctions collected as dedicated credits from Medicaid providers under Subsection 26B-3-108(7). 63J-1-602.2(10) The primary care grant program created in Section 26B-4-310. 63J-1-602.2(11) The Opiate Overdose Outreach Pilot Program created in Section 26B-4-512. 63J-1-602.2(12) The Utah Health Care Workforce Financial Assistance Program created in Section 26B-4-702. 63J-1-602.2(13) The Rural Physician Loan Repayment Program created in Section 26B-4-703. 63J-1-602.2(14) The Utah Medical Education Council for the:administration of the Utah Medical Education Program created in Section 26B-4-707;provision of medical residency grants described in Section 26B-4-711; andprovision of the forensic psychiatric fellowship grant described in Section 26B-4-712. 63J-1-602.2(15) The Division of Services for People with Disabilities, as provided in Section 26B-6-402. 63J-1-602.2(16) The Communication Habits to reduce Adolescent Threats (CHAT) Pilot Program created in Section 26B-7-122. 63J-1-602.2(17) Funds that the Department of Alcoholic Beverage Services retains in accordance with Subsection 32B-2-301(8)(a) or (b). 63J-1-602.2(18) The General Assistance program administered by the Department of Workforce Services, as provided in Section 35A-3-401. 63J-1-602.2(19) The Utah National Guard, created in Title 39A, National Guard and Militia Act. 63J-1-602.2(20) The Search and Rescue Financial Assistance Program, as provided in Section 53-2a-1102. 63J-1-602.2(21) The Emergency Medical Services Grant Program, as provided in Section 53-2d-207. 63J-1-602.2(22) The Motorcycle Rider Education Program, as provided in Section 53-3-905. 63J-1-602.2(23) The Utah Board of Higher Education for teacher preparation programs, as provided in Section 53H-5-402. 63J-1-602.2(24) Innovation grants under Section 53G-10-608, except as provided in Subsection 53G-10-608(3). 63J-1-602.2(25) The Division of Fleet Operations for the purpose of upgrading underground storage tanks under Section 63A-9-401. 63J-1-602.2(26) The Division of Technology Services for technology innovation as provided under Section 63A-16-903. 63J-1-602.2(27) The State Capitol Preservation Board created by Section 63O-2-201. 63J-1-602.2(28) The Office of Administrative Rules for publishing, as provided in Section 63G-3-402. 63J-1-602.2(29) The Colorado River Authority of Utah, created in Title 63M, Chapter 14, Colorado River Authority of Utah Act. 63J-1-602.2(30) The Governor’s Office of Economic Opportunity to fund the Enterprise Zone Act, as provided in Title 63N, Chapter 2, Part 2, Enterprise Zone Act. 63J-1-602.2(31) The Governor’s Office of Economic Opportunity’s Rural Employment Expansion Program, as described in Title 63N, Chapter 4, Part 4, Rural Employment Expansion Program. 63J-1-602.2(32) County correctional facility contracting program for state inmates as described in Section 64-13e-103. 63J-1-602.2(33) County correctional facility reimbursement program for state probationary inmates and state parole inmates as described in Section 64-13e-104. 63J-1-602.2(34) Programs for the Jordan River Recreation Area as described in Section 65A-2-8. 63J-1-602.2(35) The Division of Human Resource Management user training program, as provided in Section 63A-17-106. 63J-1-602.2(36) A public safety answering point’s emergency telecommunications service fund, as provided in Section 69-2-301. 63J-1-602.2(37) The Traffic Noise Abatement Program created in Section 72-6-112. 63J-1-602.2(38) The money appropriated from the Navajo Water Rights Negotiation Account to the Division of Water Rights, created in Section 73-2-1.1, for purposes of participating in a settlement of federal reserved water right claims. 63J-1-602.2(39) The Judicial Council for compensation for special prosecutors, as provided in Section 77-10a-19. 63J-1-602.2(40) A state rehabilitative employment program, as provided in Section 78A-6-210. 63J-1-602.2(41) The Utah Geological Survey, as provided in Section 79-3-401. 63J-1-602.2(42) The Bonneville Shoreline Trail Program created under Section 79-5-503. 63J-1-602.2(43) Adoption document access as provided in Sections 81-13-103, 81-13-504, and 81-13-505. 63J-1-602.2(44) Indigent defense as provided in Title 78B, Chapter 22, Part 4, Utah Indigent Defense Commission. 63J-1-602.2(45) The program established by the Division of Facilities Construction and Management under Section 63A-5b-703 under which state agencies receive an appropriation and pay lease payments for the use and occupancy of buildings owned by the Division of Facilities Construction and Management. 63J-1-602.2(46) The State Tax Commission for reimbursing counties for deferrals in accordance with Section 59-2-1802.5. 63J-1-602.2(47) The Veterinarian Education Loan Repayment Program created in Section 4-2-902.

63J-1-603 - Nonlapsing authority.

63J-1-603(1) As used in this section:

“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” does not include those entities whose unappropriated and unencumbered balances are made nonlapsing by the operation of Subsection 63J-1-601(2). “Appropriation balance” means the unexpended and unencumbered balance of a line item appropriation made by the Legislature to an agency that exists at the end of a fiscal year. “Nonlapsing” means that an agency’s appropriation balance is not closed out to the appropriate fund at the end of a fiscal year as required by Section 63J-1-601. “One-time project” means a project or program that can be completed with the appropriation balance and includes such items as employee incentive awards and bonuses, purchase of equipment, and one-time training. “One-time projects list” means: a prioritized list of one-time projects, upon which an agency would like to spend any appropriation balance; and for each project, the maximum amount the agency is estimating for the project. “Program” means a service provided by an agency to members of the public, other agencies, or to employees of the agency. 63J-1-603(2) Notwithstanding the requirements of Section 63J-1-601, an agency may, by following the procedures and requirements of this section, retain and expend any appropriation balance. 63J-1-603(3) Each agency that wishes to preserve any part or all of its appropriation balance as nonlapsing shall include a one-time projects list as part of the budget request that it submits to the governor and the Legislature at the annual general session of the Legislature immediately before the end of the fiscal year in which the agency may have an appropriation balance. An agency may not include a proposed expenditure on its one-time projects list if: the expenditure creates a new program; the expenditure enhances the level of an existing program; or the expenditure will require a legislative appropriation in the next fiscal year. The governor: may approve some or all of the items from an agency’s one-time projects list; and shall identify and prioritize any approved one-time projects in the budget that the governor submits to the Legislature. 63J-1-603(4) The Legislature:

may approve some or all of the specific items from an agency’s one-time projects list as authorized expenditures of an agency’s appropriation balance; shall identify any authorized one-time projects in the appropriate line item appropriation; and may prioritize one-time projects in intent language.

Government Performance Reporting and Efficiency Process

63J-1-901 - Title.

This part is known as “Government Performance Reporting and Efficiency Process.”

63J-1-902 - Definitions.

As used in this part: 63J-1-902(1) “Appropriated entity” means any entity that receives state funds. 63J-1-902(2) “Funding item” means an increase to an agency’s state funding that: is $50,000 or more; and results from action during a legislative session. “Funding item” does not include: a technical budget adjustment; restoration of a recent reduction; a standardized adjustment, including an internal service fund increase or compensation increase; or any increase that the Governor’s Office of Planning and Budget and the Office of the Legislative Fiscal Analyst agree is similar to an increase described in Subsections (2)(b)(i) through (iii). 63J-1-902(3) “Performance measure” means a program objective, effectiveness measure, program size indicator, or other related measure. 63J-1-902(4) “Product or service” means an appropriated entity’s final output or outcome. 63J-1-902(5) “Government process” means a set of functions and procedures by which an appropriated entity creates a product or service.

63J-1-903 - Performance measure and funding item reporting.

63J-1-903(1) The Governor’s Office of Planning and Budget and the Office of the Legislative Fiscal Analyst may develop an information system to collect, track, and publish agency performance measures. 63J-1-903(2) Except as provided in Subsection (3), each executive department agency shall:in consultation with the Governor’s Office of Planning and Budget and the Office of the Legislative Fiscal Analyst, develop performance measures to include in an appropriations act for each fiscal year; andon or before August 15 of each calendar year, provide to the Governor’s Office of Planning and Budget and the Office of the Legislative Fiscal Analyst:any recommendations for legislative changes for the next fiscal year to the agency’s previously adopted performance measures or targets; anda report of the final status of the agency’s performance measures included in the appropriations act for the fiscal year ending the previous June 30. 63J-1-903(3) The State Board of Education and the Utah Board of Higher Education shall comply with the requirements in Subsections (2)(a) and (b) on or before November 1 of each calendar year. 63J-1-903(4) Each judicial department agency shall:develop performance measures to include in an appropriations act for each fiscal year; andannually submit to the Office of the Legislative Fiscal Analyst a report that contains:any recommendations for legislative changes for the next fiscal year to the agency’s previously adopted performance measures; andthe final status of the agency’s performance measures included in the appropriations act for the fiscal year ending the previous June 30. 63J-1-903(5) Within 21 days after the day on which the Legislature adjourns a legislative session sine die, the Governor’s Office of Planning and Budget and the Office of the Legislative Fiscal Analyst shall:create a list of funding items passed during the legislative session;from the list described in Subsection (5)(a), identify in a sublist each funding item that increases state funding by $500,000 or more from state funds; andprovide the lists described in this subsection to each executive department agency. 63J-1-903(6) Except as provided in Subsection (6), each executive department agency shall provide to the Governor’s Office of Planning and Budget and the Office of the Legislative Fiscal Analyst:for each funding item on the list described in Subsection (5)(b), within 60 days after the day on which the Legislature adjourns a legislative session sine die:one or more proposed performance measures; anda target for each performance measure described in Subsection (6)(a)(i); andfor each funding item on the list described in Subsection (5)(a), on or before August 15 of each year after the close of the fiscal year in which the funding item was first funded, a report that includes:the status of each performance measure relative to the measure’s target as described in Subsection (6)(a), if applicable;the actual amount the agency spent, if any, on the funding item; andthe month and year in which the agency implemented the program or project associated with the funding item; orif the program or project associated with the funding item is not fully implemented, the month and year in which the agency anticipates fully implementing the program or project associated with the funding item. 63J-1-903(7) The State Board of Education and the Utah Board of Higher Education shall comply with Subsection (5)(b) on or before November 1 of each calendar year. 63J-1-903(8) After an executive department agency provides proposed performance measures in accordance with Subsection (6)(a), the Governor’s Office of Planning and Budget and the Office of the Legislative Fiscal Analyst shall review the proposed performance measures and, if necessary, coordinate with the executive department agency to modify and finalize the performance measures.The Governor’s Office of Planning and Budget, the Office of the Legislative Fiscal Analyst, and the executive department agency shall finalize each proposed performance measure before July 1. 63J-1-903(9) The Governor’s Office of Planning and Budget and the Office of the Legislative Fiscal Analyst may jointly request that an executive department agency provide the report required under Subsection (6)(b) in a different fiscal year than the fiscal year in which the funding item was first funded or in multiple fiscal years. 63J-1-903(10) The Governor’s Office of Planning and Budget shall:review at least 20% of the performance measures described in Subsection (2) annually; andensure that the Governor’s Office of Planning and Budget reviews each performance measure described in Subsection (2) at least once every five years. 63J-1-903(11) The Office of the Legislative Fiscal Analyst shall review the performance measures described in Subsection (2) on a schedule that aligns with the appropriations subcommittee’s applicable accountable budget process described in legislative rule. 63J-1-903(12) The Office of the Legislative Fiscal Analyst shall report the relevant performance measure information described in this section to the Executive Appropriations Committee and the appropriations subcommittees, as appropriate.The Governor’s Office of Planning and Budget shall report the relevant performance measure information described in this section to the governor. 63J-1-903(13) Each executive department agency, when the agency’s budget is subject to a legislative appropriations subcommittee’s accountable budget process, shall:conduct a thorough evaluation of the agency’s performance measures, internal budget process, and budget controls; andsubmit the results of the evaluation to the legislative appropriations subcommittee.

63J-1-904 - Efficiency improvement process.

63J-1-904(1) The Governor’s Office of Planning and Budget and the Office of the Legislative Fiscal Analyst shall jointly operate a process to identify and prioritize government processes to target for efficiency improvements. 63J-1-904(2) The Governor’s Office of Planning and Budget and the Office of the Legislative Fiscal Analyst shall ensure that the efficiency improvement process described in Subsection (1) addresses the following:the roles of the Governor’s Office of Planning and Budget and the Office of the Legislative Fiscal Analyst throughout the efficiency improvement process;the process by which an appropriated entity’s government process is selected for an efficiency evaluation;the criteria and methodology used for an efficiency evaluation;metrics demonstrating success, including:service delivery savings;cost-savings; ortime-savings;rewards, recognitions, or incentives for an appropriated entity to make recommendations for or implement recommendations from an efficiency evaluation or other measurable efficiency improvements;whether to create a formal or informal committee that advises the efficiency improvement process; andthe process by which the Governor’s Office of Planning and Budget and the Office of the Legislative Fiscal Analyst notify the Office of the Legislative Auditor General when an efficiency evaluation is completed. 63J-1-904(3) On or before October 1 of each year, the entity shall report to the Governor’s Office of Planning and Budget and the Office of the Legislative Fiscal Analyst on the entity’s progress toward the metrics described in Subsection (2)(d). 63J-1-904(4) If the efficiency improvements result in cost-savings, as described in Subsection (2)(d), the entity may:request a portion of funds to be treated as nonlapsing in accordance with Section 63J-1-602; anduse the funds for employee retention or employee performance incentives. 63J-1-904(5) The Office of the Legislative Auditor General shall:independently review the results of each efficiency evaluation conducted under this section, including whether the executive department agency implemented any recommendations from the efficiency evaluation;provide a copy of the findings from the review to the Governor’s Office of Planning and Budget and the Office of the Legislative Fiscal Analyst; verify the reported progress described in Subsection (3); andreport the findings from the review to the Legislative Management Committee. 63J-1-904(6) Each calendar year before December 31, the Governor’s Office of Planning and Budget and the Office of the Legislative Fiscal Analyst shall report to the governor and the Legislative Management Committee, respectively, regarding the status of the efficiency improvement process and recommended changes, if any. 63J-1-904(7) The efficiency improvement process described in this section does not apply to a legislative department government process.

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63J-1 - Budgetary Procedures Act

63J-1 - Budgetary Procedures Act

Sections (41)

General Provisions

63J-1-101 - Title.

63J-1-102 - Definitions.

63J-1-103 - Agency exempt from act.

63J-1-104 - Revenue types — Disposition of free revenue and restricted revenue.

63J-1-105 - Revenue types — Disposition of dedicated credits and expendable receipts.

Budget Process, Appropriations, and Expenditures

63J-1-201 - Governor’s proposed budget to Legislature — Contents — Preparation — Appropriations based on current tax laws and not to exceed estimated revenues.

63J-1-201.5 - Financial statement to be submitted annually.

63J-1-205 - Revenue volatility report.

63J-1-205.1 - Legislature to pay debt service first.

63J-1-206 - Appropriations governed by chapter — Restrictions on expenditures — Transfer of funds — Exclusion.

63J-1-207 - Uniform School Fund — Appropriations.

63J-1-208 - Conditions on appropriations binding.

63J-1-209 - Director of finance to exercise accounting control — Budget execution plans — Allotments and expenditures.

63J-1-209.5 - Reporting requirements for budget execution plans for fiscal year 2021.

63J-1-210 - Restrictions on agency expenditures of money — Lobbyists.

63J-1-211 - Appropriating from restricted accounts.

63J-1-212 - Duplicate payment of claims prohibited.

63J-1-213 - Appropriations from special funds or accounts — Transfer by proper official only.

63J-1-214 - Warrants — Not to be drawn until claim processed — Redemption.

63J-1-215 - Cash funds — Application for account — Preference for purchasing card accounts — Cash advances — Revolving fund established by law excepted — Elimination of cash funds.

63J-1-216 - Allotment of funds to higher education.

63J-1-217 - Overexpenditure of budget by agency — Prorating budget income shortfall.

63J-1-218 - Reduction in federal funds — Agencies to reduce budgets.

Budget-Related Restricted Accounts

63J-1-312 - Establishing a General Fund Budget Reserve Account — Providing for deposits and expenditures from the account — Providing for interest generated by the account.

63J-1-313 - Establishing an Income Tax Fund Budget Reserve Account — Providing for deposits and expenditures from the account — Providing for interest generated by the account.

63J-1-314 - Deposits related to the Utah Wildfire Fund and the Disaster Recovery Funding Act.

63J-1-315 - Medicaid Growth Reduction and Budget Stabilization Account — Transfers of Medicaid growth savings — Base budget adjustments.

Internal Service Funds

63J-1-410 - Internal service funds — Governance and review.

63J-1-411 - Internal service funds — End of fiscal year — Unused authority for capital acquisition.

Fees

63J-1-504 - Fees — Adoption, procedure, and approval — Establishing and assessing fees without legislative approval — Report summarizing fees.

63J-1-505 - Payment of fees prerequisite to service — Exception.

63J-1-506 - Parking fees at court buildings.

Unused Balances

63J-1-601 - End of fiscal year — Unexpended balances — Funds not to be closed out — Pending claims — Transfer of amounts from item of appropriation — Nonlapsing accounts and funds — Institutions of higher education to report unexpended balances.

63J-1-602 - Nonlapsing appropriations.

63J-1-602.1 - List of nonlapsing appropriations from accounts and funds.

63J-1-602.2 - List of nonlapsing appropriations to programs.

63J-1-603 - Nonlapsing authority.

Government Performance Reporting and Efficiency Process

63J-1-901 - Title.

63J-1-902 - Definitions.

63J-1-903 - Performance measure and funding item reporting.

63J-1-904 - Efficiency improvement process.

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