Utah 2023 Regular Session

Utah House Bill HB0559 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	H.B. 559
2	2	LEGISLATIVE GENERAL COUNSEL
3	3	6 Approved for Filing: G. Harb 6
4	4	6 02-23-23 12:38 PM 6
5	5	H.B. 559
6	6	1 WORKFORCE DEVELOPMENT FUNDI NG AMENDMENTS
7	7	2 2023 GENERAL SESSION
8	8	3 STATE OF UTAH
9	9	4 Chief Sponsor: Jennifer Dailey-Provost
10	10	5 Senate Sponsor: ____________
11	11	6
12	12	7LONG TITLE
13	13	8General Description:
14	14	9 This bill establishes the Workforce Initiatives Fund within the Department of
15	15	10Workforce Services.
16	16	11Highlighted Provisions:
17	17	12 This bill:
18	18	13 <defines terms;
19	19	14 <replaces the Department of Workforce Services' Special Administrative Expense
20	20	15Account with a special revenue fund known as the Workforce Initiatives Fund,
21	21	16consisting of interest and penalties collected under the Employment Support Act;
22	22	17 <provides for the use of revenue in the Workforce Initiatives Fund by the Department
23	23	18of Workforce Services, including for the administration of the Utah Workforce
24	24	19Services Code and to cover the costs of workforce development programs; and
25	25	20 <makes technical and conforming changes.
26	26	21Money Appropriated in this Bill:
27	27	22 This bill appropriates in fiscal year 2024:
28	28	23 <to Department of Workforce Services -- Administration, as an ongoing
29	29	24appropriation:
30	30	25 Cfrom Workforce Initiatives Fund, $67,500;
31	31	26 <to Department of Workforce Services -- Operations and Policy, as an ongoing
32	32	27appropriation:
33	33	HB0559 H.B. 559 02-23-23 12:38 PM
34	34	- 2 -
35	35	28 Cfrom Workforce Initiatives Fund, $3,268,500;
36	36	29 <to Department of Workforce Services -- State Office of Rehabilitation, as an
37	37	30ongoing appropriation:
38	38	31 Cfrom Workforce Initiatives Fund, $1,500; and
39	39	32 <to Department of Workforce Services -- Unemployment Insurance, as an ongoing
40	40	33appropriation:
41	41	34 Cfrom Workforce Initiatives Fund, $837,500.
42	42	35Other Special Clauses:
43	43	36 This bill provides a special effective date.
44	44	37Utah Code Sections Affected:
45	45	38AMENDS:
46	46	39 31A-38-104, as last amended by Laws of Utah 2011, Chapters 303, 342
47	47	40 35A-4-305, as last amended by Laws of Utah 2012, Chapter 15
48	48	41 35A-4-314, as enacted by Laws of Utah 2013, Chapter 473
49	49	42 35A-4-507, as last amended by Laws of Utah 2011, Chapter 342
50	50	43 63B-10-401, as last amended by Laws of Utah 2010, Chapter 278
51	51	44REPEALS AND REENACTS:
52	52	45 35A-4-506, as last amended by Laws of Utah 2013, Chapter 315
53	53	46
54	54	47Be it enacted by the Legislature of the state of Utah:
55	55	48 Section 1. Section 31A-38-104 is amended to read:
56	56	49 31A-38-104. Authorization -- Money transferred for reserves.
57	57	50 (1) The Department of Workforce Services may:
58	58	51 (a) convert the bridge program to the state program through any of the following, or
59	59	52combination of the following, that the Department of Workforce Services considers best serves
60	60	53the needs of qualified participants:
61	61	54 (i) a contract with a licensed insurance company authorized to do business in the state;
62	62	55 (ii) through any other arrangement acceptable under the Trade Reform Act; or
63	63	56 (iii) a self-insurance program through a third party administrator as provided in
64	64	57Subsection 31A-38-103(3)(b)(ii); and
65	65	58 (b) obligate up to $2,000,000 of the [Special Administrative Expense Account] 02-23-23 12:38 PM H.B. 559
66	66	- 3 -
67	67	59Workforce Initiatives Fund created in Section 35A-4-506 as reserves for the state program.
68	68	60 (2) The money in Subsection (1)(b) may be used until the reserves in the state program
69	69	61become adequate.
70	70	62 Section 2. Section 35A-4-305 is amended to read:
71	71	63 35A-4-305. Collection of contributions -- Unpaid contributions to bear interest --
72	72	64Offer to compromise.
73	73	65 (1) (a) Contributions unpaid on the date on which they are due and payable, as
74	74	66prescribed by the division, shall bear interest at the rate of 1% per month from and after that
75	75	67date until payment plus accrued interest is received by the division.
76	76	68 (b) (i) Contribution reports not made and filed by the date on which they are due as
77	77	69prescribed by the division are subject to a penalty to be assessed and collected in the same
78	78	70manner as contributions due under this section equal to 5% of the contribution due if the failure
79	79	71to file on time was not more than 15 days, with an additional 5% for each additional 15 days or
80	80	72fraction thereof during which the failure continued, but not to exceed 25% in the aggregate and
81	81	73not less than $25 with respect to each reporting period.
82	82	74 (ii) If a report is filed after the required time and it is shown to the satisfaction of the
83	83	75division or its authorized representative that the failure to file was due to a reasonable cause
84	84	76and not to willful neglect, no addition shall be made to the contribution.
85	85	77 (c) (i) If contributions are unpaid after 10 days from the date of the mailing or personal
86	86	78delivery by the division or its authorized representative, of a written demand for payment, there
87	87	79shall attach to the contribution, to be assessed and collected in the same manner as
88	88	80contributions due under this section, a penalty equal to 5% of the contribution due.
89	89	81 (ii) A penalty may not attach if within 10 days after the mailing or personal delivery,
90	90	82arrangements for payment have been made with the division, or its authorized representative,
91	91	83and payment is made in accordance with those arrangements.
92	92	84 (d) The division shall assess as a penalty a service charge, in addition to any other
93	93	85penalties that may apply, in an amount not to exceed the service charge imposed by Section
94	94	867-15-1 for dishonored instruments if:
95	95	87 (i) any amount due the division for contributions, interest, other penalties or benefit
96	96	88overpayments is paid by check, draft, order, or other instrument; and
97	97	89 (ii) the instrument is dishonored or not paid by the institution against which it is drawn. H.B. 559 02-23-23 12:38 PM
98	98	- 4 -
99	99	90 (e) Except for benefit overpayments under Subsection 35A-4-405(5), benefit
100	100	91overpayments, contributions, interest, penalties, and assessed costs, uncollected three years
101	101	92after they become due, may be charged as uncollectible and removed from the records of the
102	102	93division if:
103	103	94 (i) no assets belonging to the liable person and subject to attachment can be found; and
104	104	95 (ii) in the opinion of the division there is no likelihood of collection at a future date.
105	105	96 (f) Interest and penalties collected in accordance with this section shall be paid into the
106	106	97[Special Administrative Expense Account created by] Workforce Initiatives Fund created in
107	107	98Section 35A-4-506.
108	108	99 (g) Action required for the collection of sums due under this chapter is subject to the
109	109	100applicable limitations of actions under Title 78B, Chapter 2, Statutes of Limitations.
110	110	101 (2) (a) If an employer fails to file a report when prescribed by the division for the
111	111	102purpose of determining the amount of the employer's contribution due under this chapter, or if
112	112	103the report when filed is incorrect or insufficient or is not satisfactory to the division, the
113	113	104division may determine the amount of wages paid for employment during the period or periods
114	114	105with respect to which the reports were or should have been made and the amount of
115	115	106contribution due from the employer on the basis of any information it may be able to obtain.
116	116	107 (b) The division shall give written notice of the determination to the employer.
117	117	108 (c) The determination is considered correct unless:
118	118	109 (i) the employer, within 10 days after mailing or personal delivery of notice of the
119	119	110determination, applies to the division for a review of the determination as provided in Section
120	120	11135A-4-508; or
121	121	112 (ii) unless the division or its authorized representative of its own motion reviews the
122	122	113determination.
123	123	114 (d) The amount of contribution determined under Subsection (2)(a) is subject to
124	124	115penalties and interest as provided in Subsection (1).
125	125	116 (3) (a) If, after due notice, an employer defaults in the payment of contributions,
126	126	117interest, or penalties on the contributions, or a claimant defaults in a repayment of benefit
127	127	118overpayments and penalties on the overpayments, the amount due shall be collectible by civil
128	128	119action in the name of the division, and the employer adjudged in default shall pay the costs of
129	129	120the action. 02-23-23 12:38 PM H.B. 559
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131	131	121 (b) Civil actions brought under this section to collect contributions, interest, or
132	132	122penalties from an employer, or benefit overpayments and penalties from a claimant shall be:
133	133	123 (i) heard by the court at the earliest possible date; and
134	134	124 (ii) entitled to preference upon the calendar of the court over all other civil actions
135	135	125except:
136	136	126 (A) petitions for judicial review under this chapter; and
137	137	127 (B) cases arising under the workers' compensation law of this state.
138	138	128 (c) (i) (A) To collect contributions, interest, or penalties, or benefit overpayments and
139	139	129penalties due from employers or claimants located outside Utah, the division may employ
140	140	130private collectors providing debt collection services outside Utah.
141	141	131 (B) Accounts may be placed with private collectors only after the employer or claimant
142	142	132has been given a final notice that the division intends to place the account with a private
143	143	133collector for further collection action.
144	144	134 (C) The notice shall advise the employer or claimant of the employer's or claimant's
145	145	135rights under this chapter and the applicable rules of the department.
146	146	136 (ii) (A) A private collector may receive as compensation up to 25% of the lesser of the
147	147	137amount collected or the amount due, plus the costs and fees of any civil action or postjudgment
148	148	138remedy instituted by the private collector with the approval of the division.
149	149	139 (B) The employer or claimant shall be liable to pay the compensation of the collector,
150	150	140costs, and fees in addition to the original amount due.
151	151	141 (iii) A private collector is subject to the federal Fair Debt Collection Practices Act, 15
152	152	142U.S.C. Sec. 1692 et seq.
153	153	143 (iv) (A) A civil action may not be maintained by a private collector without specific
154	154	144prior written approval of the division.
155	155	145 (B) When division approval is given for civil action against an employer or claimant,
156	156	146the division may cooperate with the private collector to the extent necessary to effect the civil
157	157	147action.
158	158	148 (d) (i) Notwithstanding Section 35A-4-312, the division may disclose the contribution,
159	159	149interest, penalties or benefit overpayments and penalties, costs due, the name of the employer
160	160	150or claimant, and the employer's or claimant's address and telephone number when any
161	161	151collection matter is referred to a private collector under Subsection (3)(c). H.B. 559 02-23-23 12:38 PM
162	162	- 6 -
163	163	152 (ii) A private collector is subject to the confidentiality requirements and penalty
164	164	153provisions provided in Section 35A-4-312 and Subsection 76-8-1301(4), except to the extent
165	165	154disclosure is necessary in a civil action to enforce collection of the amounts due.
166	166	155 (e) An action taken by the division under this section may not be construed to be an
167	167	156election to forego other collection procedures by the division.
168	168	157 (4) (a) In the event of a distribution of an employer's assets under an order of a court
169	169	158under the laws of Utah, including a receivership, assignment for benefits of creditors,
170	170	159adjudicated insolvency, composition, or similar proceedings, contributions then or thereafter
171	171	160due shall be paid in full prior to all other claims except taxes and claims for wages of not more
172	172	161than $400 to each claimant, earned within five months of the commencement of the
173	173	162proceeding.
174	174	163 (b) If an employer commences a proceeding in the Federal Bankruptcy Court under a
175	175	164chapter of 11 U.S.C. 101 et seq., as amended by the Bankruptcy Abuse Prevention and
176	176	165Consumer Protection Act of 2005, contributions, interest, and penalties then or thereafter due
177	177	166shall be entitled to the priority provided for taxes, interest, and penalties in the Bankruptcy
178	178	167Abuse Prevention and Consumer Protection Act of 2005.
179	179	168 (5) (a) In addition and as an alternative to any other remedy provided by this chapter
180	180	169and provided that no appeal or other proceeding for review provided by this chapter is then
181	181	170pending and the time for taking it has expired, the division may issue a warrant in duplicate,
182	182	171under its official seal, directed to the sheriff of any county of the state, commanding the sheriff
183	183	172to levy upon and sell the real and personal property of a delinquent employer or claimant found
184	184	173within the sheriff's county for the payment of the contributions due, with the added penalties,
185	185	174interest, or benefit overpayment and penalties, and costs, and to return the warrant to the
186	186	175division and pay into the fund the money collected by virtue of the warrant by a time to be
187	187	176specified in the warrant, not more than 60 days from the date of the warrant.
188	188	177 (b) (i) Immediately upon receipt of the warrant in duplicate, the sheriff shall file the
189	189	178duplicate with the clerk of the district court in the sheriff's county.
190	190	179 (ii) The clerk shall enter in the judgment docket, in the column for judgment debtors,
191	191	180the name of the delinquent employer or claimant mentioned in the warrant, and in appropriate
192	192	181columns the amount of the contribution, penalties, interest, or benefit overpayment and
193	193	182penalties, and costs, for which the warrant is issued and the date when the duplicate is filed. 02-23-23 12:38 PM H.B. 559
194	194	- 7 -
195	195	183 (c) The amount of the docketed warrant shall:
196	196	184 (i) have the force and effect of an execution against all personal property of the
197	197	185delinquent employer; and
198	198	186 (ii) become a lien upon the real property of the delinquent employer or claimant in the
199	199	187same manner and to the same extent as a judgment duly rendered by a district court and
200	200	188docketed in the office of the clerk.
201	201	189 (d) After docketing, the sheriff shall:
202	202	190 (i) proceed in the same manner as is prescribed by law with respect to execution issued
203	203	191against property upon judgments of a court of record; and
204	204	192 (ii) be entitled to the same fees for the sheriff's services in executing the warrant, to be
205	205	193collected in the same manner.
206	206	194 (6) (a) Contributions imposed by this chapter are a lien upon the property of an
207	207	195employer liable for the contribution required to be collected under this section who shall sell
208	208	196out the employer's business or stock of goods or shall quit business, if the employer fails to
209	209	197make a final report and payment on the date subsequent to the date of selling or quitting
210	210	198business on which they are due and payable as prescribed by rule.
211	211	199 (b) (i) An employer's successor, successors, or assigns, if any, are required to withhold
212	212	200sufficient of the purchase money to cover the amount of the contributions and interest or
213	213	201penalties due and payable until the former owner produces a receipt from the division showing
214	214	202that they have been paid or a certificate stating that no amount is due.
215	215	203 (ii) If the purchaser of a business or stock of goods fails to withhold sufficient purchase
216	216	204money, the purchaser is personally liable for the payment of the amount of the contributions
217	217	205required to be paid by the former owner, interest and penalties accrued and unpaid by the
218	218	206former owner, owners, or assignors.
219	219	207 (7) (a) If an employer is delinquent in the payment of a contribution, the division may
220	220	208give notice of the amount of the delinquency by registered mail to all persons having in their
221	221	209possession or under their control, any credits or other personal property belonging to the
222	222	210employer, or owing any debts to the employer at the time of the receipt by them of the notice.
223	223	211 (b) A person notified under Subsection (7)(a) shall neither transfer nor make any other
224	224	212disposition of the credits, other personal property, or debts until:
225	225	213 (i) the division has consented to a transfer or disposition; or H.B. 559 02-23-23 12:38 PM
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227	227	214 (ii) 20 days after the receipt of the notice.
228	228	215 (c) All persons notified under Subsection (7)(a) shall, within five days after receipt of
229	229	216the notice, advise the division of credits, other personal property, or other debts in their
230	230	217possession, under their control or owing by them, as the case may be.
231	231	218 (8) (a) (i) Each employer shall furnish the division necessary information for the proper
232	232	219administration of this chapter and shall include wage information for each employee, for each
233	233	220calendar quarter.
234	234	221 (ii) The information shall be furnished at a time, in the form, and to those individuals
235	235	222as the department may by rule require.
236	236	223 (b) (i) Each employer shall furnish each individual worker who is separated that
237	237	224information as the department may by rule require, and shall furnish within 48 hours of the
238	238	225receipt of a request from the division a report of the earnings of any individual during the
239	239	226individual's base-period.
240	240	227 (ii) The report shall be on a form prescribed by the division and contain all information
241	241	228prescribed by the division.
242	242	229 (c) (i) For each failure by an employer to conform to this Subsection (8) the division
243	243	230shall, unless good cause is shown, assess a $50 penalty if the filing was not more than 15 days
244	244	231late.
245	245	232 (ii) If the filing is more than 15 days late, the division shall assess an additional penalty
246	246	233of $50 for each 15 days, or a fraction of the 15 days that the filing is late, not to exceed $250
247	247	234per filing.
248	248	235 (iii) The penalty is to be collected in the same manner as contributions due under this
249	249	236chapter.
250	250	237 (d) (i) The division shall prescribe rules providing standards for determining which
251	251	238contribution reports shall be filed on magnetic or electronic media or in other machine-readable
252	252	239form.
253	253	240 (ii) In prescribing these rules, the division:
254	254	241 (A) may not require an employer to file contribution reports on magnetic or electronic
255	255	242media unless the employer is required to file wage data on at least 250 employees during any
256	256	243calendar quarter or is an authorized employer representative who files quarterly tax reports on
257	257	244behalf of 100 or more employers during any calendar quarter; 02-23-23 12:38 PM H.B. 559
258	258	- 9 -
259	259	245 (B) shall take into account, among other relevant factors, the ability of the employer to
260	260	246comply at reasonable cost with the requirements of the rules; and
261	261	247 (C) may require an employer to post a bond for failure to comply with the rules
262	262	248required by this Subsection (8)(d).
263	263	249 (9) (a) (i) An employer liable for payments in lieu of contributions shall file
264	264	250Reimbursable Employment and Wage Reports.
265	265	251 (ii) The reports are due on the last day of the month that follows the end of each
266	266	252calendar quarter unless the division, after giving notice, changes the due date.
267	267	253 (iii) A report postmarked on or before the due date is considered timely.
268	268	254 (b) (i) Unless the employer can show good cause, the division shall assess a $50
269	269	255penalty against an employer who does not file Reimbursable Employment and Wage Reports
270	270	256within the time limits set out in Subsection (9)(a) if the filing was not more than 15 days late.
271	271	257 (ii) If the filing is more than 15 days late, the division shall assess an additional penalty
272	272	258of $50 for each 15 days, or a fraction of the 15 days that the filing is late, not to exceed $250
273	273	259per filing.
274	274	260 (iii) The division shall assess and collect the penalties referred to in this Subsection
275	275	261(9)(b) in the same manner as prescribed in Sections 35A-4-309 and 35A-4-311.
276	276	262 (10) If a person liable to pay a contribution or benefit overpayment imposed by this
277	277	263chapter neglects or refuses to pay it after demand, the amount, including any interest, additional
278	278	264amount, addition to contributions, or assessable penalty, together with any additional accruable
279	279	265costs, shall be a lien in favor of the division upon all property and rights to property, whether
280	280	266real or personal belonging to the person.
281	281	267 (11) (a) The lien imposed by Subsection (10) arises at the time the assessment, as
282	282	268defined in the department rules, is made and continues until the liability for the amount
283	283	269assessed, or a judgment against the taxpayer arising out of the liability, is satisfied.
284	284	270 (b) (i) The lien imposed by Subsection (10) is not valid as against a purchaser, holder
285	285	271of a security interest, mechanics' lien holder, or judgment lien creditor until the division files a
286	286	272warrant with the clerk of the district court.
287	287	273 (ii) For the purposes of this Subsection (11)(b):
288	288	274 (A) "Judgment lien creditor" means a person who obtains a valid judgment of a court
289	289	275of record for recovery of specific property or a sum certain of money, and who in the case of a H.B. 559 02-23-23 12:38 PM
290	290	- 10 -
291	291	276recovery of money, has a perfected lien under the judgment on the property involved. A
292	292	277judgment lien does not include inchoate liens such as attachment or garnishment liens until
293	293	278they ripen into a judgment. A judgment lien does not include the determination or assessment
294	294	279of a quasi-judicial authority, such as a state or federal taxing authority.
295	295	280 (B) "Mechanics' lien holder" means any person who has a lien on real property, or on
296	296	281the proceeds of a contract relating to real property, for services, labor, or materials furnished in
297	297	282connection with the construction or improvement of the property. A person has a lien on the
298	298	283earliest date the lien becomes valid against subsequent purchasers without actual notice, but not
299	299	284before the person begins to furnish the services, labor, or materials.
300	300	285 (C) "Person" means:
301	301	286 (I) an individual;
302	302	287 (II) a trust;
303	303	288 (III) an estate;
304	304	289 (IV) a partnership;
305	305	290 (V) an association;
306	306	291 (VI) a company;
307	307	292 (VII) a limited liability company;
308	308	293 (VIII) a limited liability partnership; or
309	309	294 (IX) a corporation.
310	310	295 (D) "Purchaser" means a person who, for adequate and full consideration in money or
311	311	296money's worth, acquires an interest, other than a lien or security interest, in property which is
312	312	297valid under state law against subsequent purchasers without actual notice.
313	313	298 (E) "Security interest" means any interest in property acquired by contract for the
314	314	299purpose of securing payment or performance of an obligation or indemnifying against loss or
315	315	300liability. A security interest exists at any time:
316	316	301 (I) the property is in existence and the interest has become protected under the law
317	317	302against a subsequent judgment lien arising out of an unsecured obligation; and
318	318	303 (II) to the extent that, at that time, the holder has parted with money or money's worth.
319	319	304 (12) (a) Except in cases involving a violation of unemployment compensation
320	320	305provisions under Section 76-8-1301, Subsection 35A-4-304(5), or Subsection 35A-4-405(5),
321	321	306and at the discretion of the division, the division may accept an offer in compromise from an 02-23-23 12:38 PM H.B. 559
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323	323	307employer or claimant to reduce past due debt arising from contributions or benefit
324	324	308overpayments imposed under this chapter.
325	325	309 (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
326	326	310division shall make rules for allowing an offer in compromise provided under Subsection
327	327	311(12)(a).
328	328	312 Section 3. Section 35A-4-314 is amended to read:
329	329	313 35A-4-314. Disclosure of information for debt collection -- Court order --
330	330	314Procedures -- Use of information restrictions -- Penalties.
331	331	315 (1) The division shall disclose to a creditor who has obtained judgment against a debtor
332	332	316the name and address of the last known employer of the debtor if:
333	333	317 (a) the judgment creditor obtains a court order requiring disclosure of the information
334	334	318as described in Subsection (2); and
335	335	319 (b) the judgment creditor completes the requirements described in Subsection (3),
336	336	320including entering into a written agreement with the division.
337	337	321 (2) (a) A court shall grant an order to disclose the information described in Subsection
338	338	322(1) if, under the applicable Utah Rules of Civil Procedure:
339	339	323 (i) the judgment creditor files a motion with the court, which includes a copy of the
340	340	324judgment, and serves a copy of the motion to the judgment debtor and the division;
341	341	325 (ii) the judgment debtor and the division have the opportunity to respond to the motion;
342	342	326and
343	343	327 (iii) the court denies or overrules any objection to disclosure in the judgment debtor's
344	344	328and the division's response.
345	345	329 (b) A court may not grant an order to disclose the information described in Subsection
346	346	330(1), if the court finds that the division has established that disclosure will have a negative effect
347	347	331on:
348	348	332 (i) the willingness of employers to report wage and employment information; or
349	349	333 (ii) the willingness of individuals to file claims for unemployment benefits.
350	350	334 (c) The requirements of Subsection 63G-2-202(7) and Section 63G-2-207 do not apply
351	351	335to information sought through a court order as described in this section.
352	352	336 (3) If a court order is granted in accordance with this section, a judgment creditor shall:
353	353	337 (a) provide to the division a copy of the order requiring the disclosure; H.B. 559 02-23-23 12:38 PM
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355	355	338 (b) enter into a written agreement with the division, in a form approved by the division;
356	356	339 (c) pay the division a reasonable fee that reflects the cost for processing the request as
357	357	340established by department rule; and
358	358	341 (d) comply with the data safeguard and security measures described in 20 C.F.R. Sec.
359	359	342603.9 with respect to information received from the division under this section.
360	360	343 (4) If a judgment creditor complies with Subsection (3), the division shall provide the
361	361	344information to the judgment creditor within 14 business days after the day on which the
362	362	345creditor complies with Subsection (3).
363	363	346 (5) A judgment creditor may not:
364	364	347 (a) use the information obtained under this section for a purpose other than satisfying
365	365	348the judgment between the creditor and debtor; or
366	366	349 (b) disclose or share the information with any other person.
367	367	350 (6) The division may audit a judgment creditor or other party receiving information
368	368	351under this section for compliance with the data safeguard and security measures described in 20
369	369	352C.F.R. Sec. 603.9.
370	370	353 (7) If a judgment creditor or other party fails to comply with the data safeguard and
371	371	354security measures under 20 C.F.R. Sec. 603.9, the judgment creditor or other party is subject to
372	372	355a civil penalty of no more than $10,000 enforceable by the [Utah] Office of the Attorney
373	373	356General as follows:
374	374	357 (a) the attorney general, on the attorney general's own behalf or on behalf of the
375	375	358division, may file an action in district court to enforce the civil penalty; and
376	376	359 (b) if the attorney general prevails in enforcing the civil penalty against the judgment
377	377	360creditor or other party:
378	378	361 (i) the attorney general is entitled to an award for reasonable attorney fees, court costs,
379	379	362and investigative expenses; and
380	380	363 (ii) the civil penalty shall be deposited into the [special administrative expense account
381	381	364described in Subsection 35A-4-506(1)] Workforce Initiatives Fund created in Section
382	382	36535A-4-506.
383	383	366 Section 4. Section 35A-4-506 is repealed and reenacted to read:
384	384	367 35A-4-506. Workforce Initiatives Fund.
385	385	368 (1) As used in this section, "fund" means the Workforce Initiatives Fund created in 02-23-23 12:38 PM H.B. 559
386	386	- 13 -
387	387	369Subsection (2).
388	388	370 (2) There is created an expendable special revenue fund known as the "Workforce
389	389	371Initiatives Fund."
390	390	372 (3) The fund consists of:
391	391	373 (a) except as provided in Subsection (7), interest and penalties collected under this
392	392	374chapter, less refunds made under Subsection 35A-4-306(5);
393	393	375 (b) money requisitioned under Section 35A-4-507;
394	394	376 (c) gifts, grants, donations, contributions, or any other conveyance of money that may
395	395	377be made to the fund from public or private sources; and
396	396	378 (d) interest and earnings on fund money.
397	397	379 (4) The state treasurer shall:
398	398	380 (a) invest money in the fund in accordance with Title 51, Chapter 7, State Money
399	399	381Management Act; and
400	400	382 (b) deposit interest and earnings derived from investing fund money into the fund.
401	401	383 (5) Subject to Subsection (6), the department may expend money in the fund:
402	402	384 (a) for the administration of this title;
403	403	385 (b) to establish reserves for the state program created under Title 31A, Chapter 38,
404	404	386Federal Health Care Tax Credit Program Act, in accordance with Subsection
405	405	38731A-38-104(1)(b);
406	406	388 (c) to cover the costs of programs or initiatives implemented by the department for
407	407	389workforce development;
408	408	390 (d) for a purpose which supports the department, employers, or workforce initiatives;
409	409	391and
410	410	392 (e) for programs that reinvest in the workforce.
411	411	393 (6) (a) Money in the fund shall be made available to replace, within a reasonable time,
412	412	394any money received by this state under Section 302 of the Social Security Act, 42 U.S.C. Sec.
413	413	395502, as amended, that because of any action of contingency has been lost or has been expended
414	414	396for purposes other than or in amounts in excess of those necessary for the proper administration
415	415	397of this chapter.
416	416	398 (b) If the department expends money in the fund for a purpose unrelated to the
417	417	399administration of the unemployment compensation program as described in Subsection H.B. 559 02-23-23 12:38 PM
418	418	- 14 -
419	419	400303(a)(8) of the Social Security Act, 42 U.S.C. Sec. 503(a)(8), as amended, the division shall
420	420	401develop and follow a cost allocation plan in compliance with United States Department of
421	421	402Labor regulations, including the cost principles described in 29 C.F.R. Sec. 97.22(b) and 2
422	422	403C.F.R. Part 225.
423	423	404 (7) In accordance with Subsection 303(a)(11) of the Social Security Act, 42 U.S.C.
424	424	405Sec. 503(a)(8), as amended, the department shall deposit 15% of civil penalties collected for
425	425	406fraud under Subsection 35A-4-405(5)(c)(i) into the Unemployment Compensation Fund
426	426	407established in Section 35A-4-501.
427	427	408 Section 5. Section 35A-4-507 is amended to read:
428	428	409 35A-4-507. Authority to obtain money from state's account in federal
429	429	410unemployment trust fund -- Use and deposit.
430	430	411 (1) Notwithstanding the provisions of Sections 35A-4-501 and 35A-4-506, the
431	431	412department may requisition and receive from the state's account in the unemployment trust
432	432	413fund in the treasury of the United States the money standing to the state's credit as may,
433	433	414consistent with conditions for approval of this chapter under the Federal Unemployment Tax
434	434	415Act, 26 U.S.C. 3301 et seq., be used for expenses of administering this chapter and to expend
435	435	416the money for that purpose.
436	436	417 (2) Money requisitioned under Subsection (1) shall be deposited [in] into the [Special
437	437	418Administrative Expense Account] Workforce Initiatives Fund created by Section 35A-4-506.
438	438	419 Section 6. Section 63B-10-401 is amended to read:
439	439	420 63B-10-401. Other capital facility authorizations and intent language.
440	440	421 (1) It is the intent of the Legislature that:
441	441	422 (a) Utah State University use institutional funds to plan, design, and construct an
442	442	423expansion of the HPER Building under the direction of the director of the Division of Facilities
443	443	424Construction and Management unless supervisory authority has been delegated;
444	444	425 (b) no state funds be used for any portion of this project; and
445	445	426 (c) the university may request state funds for operations and maintenance to the extent
446	446	427that the university is able to demonstrate to the Board of Regents that the facility meets
447	447	428approved academic and training purposes under Board of Regents policy R710.
448	448	429 (2) It is the intent of the Legislature that:
449	449	430 (a) the University of Utah use institutional funds to plan, design, and construct the 02-23-23 12:38 PM H.B. 559
450	450	- 15 -
451	451	431Moran Eye Center II project under the direction of the director of the Division of Facilities
452	452	432Construction and Management unless supervisory authority has been delegated;
453	453	433 (b) no state funds be used for any portion of this project; and
454	454	434 (c) the university may request state funds for operations and maintenance to the extent
455	455	435that the university is able to demonstrate to the Board of Regents that the facility meets
456	456	436approved academic and training purposes under Board of Regents policy R710.
457	457	437 (3) It is the intent of the Legislature that:
458	458	438 (a) the University of Utah use institutional funds to plan, design, and construct the E.
459	459	439E. Jones Medical Science Addition under the direction of the director of the Division of
460	460	440Facilities Construction and Management unless supervisory authority has been delegated;
461	461	441 (b) no state funds be used for any portion of this project; and
462	462	442 (c) the university may request state funds for operations and maintenance to the extent
463	463	443that the university is able to demonstrate to the Board of Regents that the facility meets
464	464	444approved academic and training purposes under Board of Regents policy R710.
465	465	445 (4) It is the intent of the Legislature that:
466	466	446 (a) the University of Utah use institutional funds to plan, design, and construct a
467	467	447Museum of Natural History under the direction of the director of the Division of Facilities
468	468	448Construction and Management unless supervisory authority has been delegated;
469	469	449 (b) no state funds be used for any portion of this project; and
470	470	450 (c) the university may request state funds for operations and maintenance to the extent
471	471	451that the university is able to demonstrate to the Board of Regents that the facility meets
472	472	452approved academic and training purposes under Board of Regents policy R710.
473	473	453 (5) It is the intent of the Legislature that:
474	474	454 (a) Dixie College use institutional funds to plan, design, and construct the Hurricane
475	475	455Education Center under the direction of the director of the Division of Facilities Construction
476	476	456and Management unless supervisory authority has been delegated;
477	477	457 (b) no state funds be used for any portion of this project; and
478	478	458 (c) the college may request state funds for operations and maintenance to the extent
479	479	459that the university is able to demonstrate to the Board of Regents that the facility meets
480	480	460approved academic and training purposes under Board of Regents policy R710.
481	481	461 (6) It is the intent of the Legislature that: H.B. 559 02-23-23 12:38 PM
482	482	- 16 -
483	483	462 (a) Southern Utah University use institutional funds to plan, design, and construct the
484	484	463Shakespearean Festival Center under the direction of the director of the Division of Facilities
485	485	464Construction and Management unless supervisory authority has been delegated;
486	486	465 (b) no state funds be used for any portion of this project; and
487	487	466 (c) the college may not request state funds for operations and maintenance.
488	488	467 (7) It is the intent of the Legislature that:
489	489	468 (a) the Department of Corrections use donations to plan, design, and construct the
490	490	469Wasatch Family History Center under the direction of the director of the Division of Facilities
491	491	470Construction and Management unless supervisory authority has been delegated;
492	492	471 (b) no state funds be used for any portion of this project; and
493	493	472 (c) the department may request state funds for operations and maintenance.
494	494	473 (8) It is the intent of the Legislature that:
495	495	474 (a) the Department of Workforce Services use $1,186,700 from its Special
496	496	475Administrative Expense Account [created in Section 35A-4-506] to plan, design, and construct
497	497	476an addition to the Cedar City Employment Center under the direction of the director of the
498	498	477Division of Facilities Construction and Management unless supervisory authority has been
499	499	478delegated; and
500	500	479 (b) the department may request state funds for operations and maintenance.
501	501	480 (9) It is the intent of the Legislature that the Division of Facilities Construction and
502	502	481Management, acting on behalf of the Department of Natural Resources, may enter into a lease
503	503	482purchase agreement with Carbon County to provide needed space for agency programs in the
504	504	483area if the Department of Natural Resources obtains the approval of the State Building Board
505	505	484by demonstrating that the lease purchase will be a benefit to the state and that the lease,
506	506	485including operation and maintenance costs, can be funded within existing agency budgets.
507	507	486 Section 7. Appropriation.
508	508	487 The following sums of money are appropriated for the fiscal year beginning July 1,
509	509	4882023, and ending June 30, 2024. These are additions to amounts previously appropriated for
510	510	489fiscal year 2024. Under the terms and conditions of Title 63J, Chapter 1, Budgetary Procedures
511	511	490Act, the Legislature appropriates the following sums of money from the funds or accounts
512	512	491indicated for the use and support of the government of the state of Utah.
513	513	492ITEM 1 02-23-23 12:38 PM H.B. 559
514	514	- 17 -
515	515	493To Department of Workforce Services -- Administration
516	516	494 From Workforce Initiatives Fund 67,500
517	517	495 Schedule of Programs:
518	518	496 Administrative Support 67,500
519	519	497ITEM 2
520	520	498To Department of Workforce Services -- Operations and Policy
521	521	499 From Workforce Initiatives Fund 3,268,500
522	522	500 Schedule of Programs:
523	523	501 Workforce Development 1,668,500
524	524	502 Other Assistance 100,000
525	525	503 Information Technology 1,500,000
526	526	504ITEM 3
527	527	505To Department of Workforce Services -- State Office of Rehabilitation
528	528	506 From Workforce Initiatives Fund 1,500
529	529	507 Schedule of Programs:
530	530	508 Deaf and Hard of Hearing 1,500
531	531	509ITEM 4
532	532	510To Department of Workforce Services -- Unemployment Insurance
533	533	511 From Workforce Initiatives Fund 837,500
534	534	512 Schedule of Programs:
535	535	513 Unemployment Insurance Administration 695,700
536	536	514 Adjudication 141,800
537	537	515 The Legislature authorizes the Department of Workforce Services, as allowed by the
538	538	516fund's authorizing statute, to spend all available money in the Workforce Initiatives Fund for
539	539	517fiscal year 2024 regardless of the amount appropriated.
540	540	518 The Legislature authorizes the Department of Government Operations, Division of
541	541	519State Finance to transfer remaining balances in the Special Administrative Expense Account to
542	542	520the Workforce Initiatives Fund as of July 1, 2023.
543	543	521 The Legislature intends that all nonlapsing funds in the Special Administrative Expense
544	544	522Account retained at the end of fiscal year 2023 for use in fiscal year 2024 within the
545	545	523Department of Workforce Services' Housing and Community Development and Operations and H.B. 559 02-23-23 12:38 PM
546	546	- 18 -
547	547	524Policy line items become part of the Workforce Initiatives Fund and be authorized for use
548	548	525within the Department of Workforce Services' Housing and Community Development and
549	549	526Operations and Policy line items in fiscal year 2024.
550	550	527 Section 8. Effective date.
551	551	528 This bill takes effect on July 1, 2023.