UT
Utah House Bill HB0077

Utah 2025 Regular Session

Utah House Bill HB0077 Compare Versions

OldNewDifferences
1-Enrolled Copy H.B. 77
1+02-28 11:37 1st Sub. (Buff) H.B. 77
2+Trevor Lee proposes the following substitute bill:
23 1
34 Flag Display Amendments
45 2025 GENERAL SESSION
56 STATE OF UTAH
67 Chief Sponsor: Trevor Lee
78 Senate Sponsor: Daniel McCay
89 2
910
1011 3
1112 LONG TITLE
1213 4
1314 General Description:
1415 5
1516 This bill allows the display of certain flags on government property.
1617 6
1718 Highlighted Provisions:
1819 7
1920 This bill:
2021 8
2122 ▸ defines terms;
2223 9
2324 ▸ prohibits a government entity or employee of a government entity from displaying a flag
2425 10
2526 in or on the grounds of government property except certain exempted flags;
2627 11
2728 ▸ requires the state auditor to ensure compliance, including by imposing fines;
2829 12
30+▸ Ĥ→ [establishes a cause of action for an alleged violation within the public education
31+12a
32+system;] ←Ĥ
33+13
2934 ▸ requires the attorney general to defend and the state to hold harmless an individual acting
30-13
35+14
3136 under color of state law to enforce the flag display statute within the public education
32-14
37+15
3338 system; and
34-15
39+16
3540 ▸ provides severability.
36-16
41+17
3742 Money Appropriated in this Bill:
38-17
43+18
3944 None
40-18
45+19
4146 Other Special Clauses:
42-19
47+20
4348 None
44-20
49+21
4550 Utah Code Sections Affected:
46-21
51+22
4752 AMENDS:
48-22
53+23
4954 67-3-1, as last amended by Laws of Utah 2024, Chapters 3, 158
50-23
55+24
5156 ENACTS:
52-24
57+25
5358 63G-1-704, Utah Code Annotated 1953
54-25
59+26
5560
56-26
61+27
5762 Be it enacted by the Legislature of the state of Utah:
58-27
59-Section 1. Section 63G-1-704 is enacted to read: H.B. 77 Enrolled Copy
63+1st Sub. H.B. 77 1st Sub. (Buff) H.B. 77 02-28 11:37
6064 28
65+Section 1. Section 63G-1-704 is enacted to read:
66+29
6167 63G-1-704 . Display of flags on government property -- Indemnification --
62-29
68+30
6369 Severability.
64-30
70+31
6571 (1) As used in this section:
66-31
72+32
6773 (a) "Display" means, in regards to a flag, to place a flag in a prominent location on
68-32
74+33
6975 government property where the flag is easily visible.
70-33
71-(b) "Flag" means a usually rectangular piece of fabric with a specific design that
7276 34
73-symbolizes a location, government entity, or cause.
77+(b) "Flag" means Ĥ→ [:] a usually rectangular piece of fabric with a
78+34a
79+specific design that symbolizes that symbolizes a location, government entity, or
80+34b
81+cause.
7482 35
83+[(i) a usually rectangular piece of fabric with a specific design that symbolizes a ] ←Ĥ
84+36
85+ Ĥ→ [location, government, entity, or cause; or]
86+37
87+[(ii) a depiction of the fabric described in Subsection (1)(b)(i).] ←Ĥ
88+38
7589 (c) "Government entity" means:
76-36
90+39
7791 (i) any local government entity, as defined in Section 63A-5b-901, including a school
78-37
92+40
7993 within the public education system; or
80-38
94+41
8195 (ii) any state agency, as defined in Section 63A-5b-901.
82-39
96+42
8397 (d) "Government property" means any property under the ownership or control of a
84-40
98+43
8599 government entity.
86-41
100+44
87101 (e) "LEA governing board" means the same as that term is defined in Section 53E-1-102.
88-42
89-(2) Except as provided in Subsection (3), a government entity, or an employee of a school
90-43
91-district or school within the public education system acting within the employee's
92-44
93-official duties, may not:
94102 45
103+(2) Except as provided in Subsection (3), a government entity Ĥ→ , ←Ĥ or Ĥ→ an ←Ĥ
104+45a
105+employee of a
106+45a
107+ Ĥ→ [government ] ←Ĥ
108+46
109+ Ĥ→ [entity Ĥ→ within a classroom of a school within
110+46a
111+the public education system] school district or school within the public
112+46b
113+education system acting within the employee's official duties ←Ĥ , ←Ĥ may not:
114+47
95115 (a) display a flag in or on the grounds of government property; or
96-46
116+48
97117 (b) display an exempt flag described in Subsection (3) with alterations in color, symbols,
98-47
118+49
99119 or appearance.
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120+50
101121 (3) The prohibition described in Subsection (2) does not apply to the following flags:
102-49
122+51
103123 (a) the official flag of the United States described in Title 4 U.S.C., Ch. 1, The Flag, and
104-50
124+52
105125 Executive Order 1959-10834, and in accordance with Section 53G-7-211;
106-51
126+53
107127 (b) an official Utah state flag as described in Title 63G, Chapter 1, Part 5, State Flags;
108-52
128+54
109129 (c) the current and official flag of another country, state, or political subdivision of
110-53
130+- 2 - 02-28 11:37 1st Sub. (Buff) H.B. 77
131+55
111132 another country or state;
112-54
133+56
113134 (d) a flag that represents a city, municipality, county, or political subdivision of the state,
114-55
135+57
115136 as those terms are defined in Sections 10-1-104, 10-2-301, 17-50-101, and 17B-1-102;
116-56
137+58
117138 (e) a flag that represents a branch, unit, or division of the United States military;
118-57
139+59
119140 (f) the National League of Families POW/MIA flag as described in 36 U.S.C. Sec. 902;
120-58
141+60
121142 (g) a flag that represents an Indian tribe as defined in federal law;
122-59
123-(h) an officially licensed flag of a college or university depicting only the colors, logos,
124-60
125-and marks consistent with official college or university branding;
126143 61
127-(i) a historic version of a flag described in Subsections (3)(a) and (b);
128-- 2 - Enrolled Copy H.B. 77
144+(h) an officially licensed flag of a college or university Ŝ→ depicting only the colors,
145+61a
146+logos, and marks consistent with official college or university branding ←Ŝ ;
129147 62
130-(j) an official public school flag;
148+(i) a historic version of a flag described in Subsections (3)(a) Ĥ→ [through (h)]
149+62a
150+and (b) ←Ĥ Ŝ→ [ that is ] ←Ŝ
131151 63
132-(k) an official flag of the United States Olympic Committee, United States Paralympic
152+ Ŝ→ [temporarily displayed for educational purposes] ←Ŝ ;
133153 64
134-Committee, International Olympic Committee, or International Paralympic
154+(j) an official public school flag; Ĥ→ [ or]
155+64a
156+(k) an official flag of the United States Olympic Committee, United States
157+64b
158+Paralympic Committee, International Olympic Committee, or International
159+64c
160+Paralympic Committee;
161+64d
162+(l) an official flag of an olympiad or paralympiad that occurred or will occur within
163+64e
164+the state; or
135165 65
136-Committee;
166+[(k)] (m) ←Ĥ a flag of an organization authorized to use a public school facility at the
167+65a
168+location and
137169 66
138-(l) an official flag of an olympiad or paralympiad that occurred or will occur within the
170+during the time in which the organization is authorized to use the public school
139171 67
140-state; or
172+facility.
141173 68
142-(m) a flag of an organization authorized to use a public school facility at the location and
174+(4)(a) The state auditor shall:
143175 69
144-during the time in which the organization is authorized to use the public school
176+(i) establish a process to receive and investigate alleged violations of this section;
145177 70
146-facility.
178+(ii) provide notice to the relevant government entity of:
147179 71
148-(4)(a) The state auditor shall:
180+(A) each alleged violation of this section involving the government entity;
149181 72
150-(i) establish a process to receive and investigate alleged violations of this section;
182+(B) each violation that the state auditor determines to be substantiated, including
151183 73
152-(ii) provide notice to the relevant government entity of:
184+an opportunity to cure the violation not to exceed 30 calendar days;
153185 74
154-(A) each alleged violation of this section involving the government entity;
186+(iii) if a government entity, other than a school district or a school within the public
155187 75
156-(B) each violation that the state auditor determines to be substantiated, including
188+education system, fails to cure a violation in accordance with Subsection
157189 76
158-an opportunity to cure the violation not to exceed 30 calendar days;
190+(4)(a)(ii)(B), impose a fine of $500 per violation per day; and
159191 77
160-(iii) if a government entity, other than a school district or a school within the public
192+(iv) deposit fines described in Subsection (4)(a)(iii) into the General Fund.
161193 78
162-education system, fails to cure a violation in accordance with Subsection
194+(b) A government entity may seek judicial review of a fine the state auditor imposes
163195 79
164-(4)(a)(ii)(B), impose a fine of $500 per violation per day; and
196+under this section to determine whether the imposition of the fine is clearly erroneous.
165197 80
166-(iv) deposit fines described in Subsection (4)(a)(iii) into the General Fund.
198+- 3 - 1st Sub. (Buff) H.B. 77 02-28 11:37
199+ Ĥ→ [(5)(a) Subject to Subsection (5)(b), a parent or legal guardian of a student who
200+80a
201+is ] ←Ĥ
167202 81
168-(b) A government entity may seek judicial review of a fine the state auditor imposes
203+ Ĥ→ [enrolled in and attends, or who is eligible to enroll in and attend, a school within the ] ←Ĥ
169204 82
170-under this section to determine whether the imposition of the fine is clearly erroneous.
205+ Ĥ→ [public education system or the Utah Schools for the Deaf and the Blind, may bring
206+82a
207+an ] ←Ĥ
171208 83
172-(5) Nothing in this section, for a local education agency, as defined in Section 53E-1-102:
209+ Ĥ→ [action in the appropriate state court for an alleged violation of this section.]
173210 84
174-(a) limits the authority of the agency related to student expression under applicable
211+[(b)(i) Before a parent may file an action for an alleged violation described in ] ←Ĥ
175212 85
176-federal or state law; or
213+ Ĥ→ [Subsection (5)(a), the parent shall provide written notice of the alleged violation ] ←Ĥ
177214 86
178-(b) removes the agency's obligation to protect all students from discrimination.
215+ Ĥ→ [to the appropriate LEA governing board.]
179216 87
217+[(ii) An LEA governing board receiving a notice described in Subsection (5)(b)(i) ] ←Ĥ
218+88
219+ Ĥ→ [shall resolve or disprove the alleged violation within 10 days after the day on
220+] ←Ĥ
221+89
222+ Ĥ→ [which the parent provides the written notice.]
223+90
224+[(c)] (5) ←Ĥ Nothing in this section Ĥ→ [ limits the authority of] , for ←Ĥ
225+90a
226+a local education agency,
227+90a
228+as defined in
229+91
230+Section 53E-1-102 Ĥ→ [, ] :
231+91a
232+(a) limits the authority of the agency ←Ĥ related to student expression under
233+91ai
234+applicable
235+91b
236+federal or state law Ĥ→ [.] ; or
237+91c
238+(b) removes the agency's obligation to protect all students from discrimination. ←Ĥ
239+92
180240 (6) Regarding a school district or a school within the public education system, the attorney
181-88
241+93
182242 general shall defend and the state shall indemnify and hold harmless a person acting
183-89
243+94
184244 under color of state law to enforce this section for any claims or damages, including
185-90
245+95
186246 court costs and attorney fees, that:
187-91
247+96
188248 (a) arise as a result of this section; and
189-92
249+97
190250 (b) are not covered by the person's insurance policies or by any coverage agreement the
191-93
251+98
192252 State Risk Management Fund issues.
193-94
253+99
194254 (7) If any provision of this section or the application of any provision of this section to any
195-95
255+100
196256 person or circumstance is held invalid by a final decision of a court, the remainder of
197-- 3 - H.B. 77 Enrolled Copy
198-96
257+101
199258 this section shall be given effect without the invalidated provision or application.
200-97
259+102
201260 Section 2. Section 67-3-1 is amended to read:
202-98
261+103
203262 67-3-1 . Functions and duties.
204-99
263+- 4 - 02-28 11:37 1st Sub. (Buff) H.B. 77
264+104
205265 (1)(a) The state auditor is the auditor of public accounts and is independent of any
206-100
266+105
207267 executive or administrative officers of the state.
208-101
268+106
209269 (b) The state auditor is not limited in the selection of personnel or in the determination
210-102
270+107
211271 of the reasonable and necessary expenses of the state auditor's office.
212-103
272+108
213273 (2) The state auditor shall examine and certify annually in respect to each fiscal year,
214-104
274+109
215275 financial statements showing:
216-105
276+110
217277 (a) the condition of the state's finances;
218-106
278+111
219279 (b) the revenues received or accrued;
220-107
280+112
221281 (c) expenditures paid or accrued;
222-108
282+113
223283 (d) the amount of unexpended or unencumbered balances of the appropriations to the
224-109
284+114
225285 agencies, departments, divisions, commissions, and institutions; and
226-110
286+115
227287 (e) the cash balances of the funds in the custody of the state treasurer.
228-111
288+116
229289 (3)(a) The state auditor shall:
230-112
290+117
231291 (i) audit each permanent fund, each special fund, the General Fund, and the accounts
232-113
292+118
233293 of any department of state government or any independent agency or public
234-114
294+119
235295 corporation as the law requires, as the auditor determines is necessary, or upon
236-115
296+120
237297 request of the governor or the Legislature;
238-116
298+121
239299 (ii) perform the audits in accordance with generally accepted auditing standards and
240-117
300+122
241301 other auditing procedures as promulgated by recognized authoritative bodies; and
242-118
302+123
243303 (iii) as the auditor determines is necessary, conduct the audits to determine:
244-119
304+124
245305 (A) honesty and integrity in fiscal affairs;
246-120
306+125
247307 (B) accuracy and reliability of financial statements;
248-121
308+126
249309 (C) effectiveness and adequacy of financial controls; and
250-122
310+127
251311 (D) compliance with the law.
252-123
312+128
253313 (b) If any state entity receives federal funding, the state auditor shall ensure that the
254-124
314+129
255315 audit is performed in accordance with federal audit requirements.
256-125
316+130
257317 (c)(i) The costs of the federal compliance portion of the audit may be paid from an
258-126
318+131
259319 appropriation to the state auditor from the General Fund.
260-127
320+132
261321 (ii) If an appropriation is not provided, or if the federal government does not
262-128
322+133
263323 specifically provide for payment of audit costs, the costs of the federal compliance
264-129
324+134
265325 portions of the audit shall be allocated on the basis of the percentage that each
266-- 4 - Enrolled Copy H.B. 77
267-130
326+135
268327 state entity's federal funding bears to the total federal funds received by the state.
269-131
328+136
270329 (iii) The allocation shall be adjusted to reflect any reduced audit time required to
271-132
330+137
272331 audit funds passed through the state to local governments and to reflect any
273-133
332+- 5 - 1st Sub. (Buff) H.B. 77 02-28 11:37
333+138
274334 reduction in audit time obtained through the use of internal auditors working
275-134
335+139
276336 under the direction of the state auditor.
277-135
337+140
278338 (4)(a) Except as provided in Subsection (4)(b), the state auditor shall, in addition to
279-136
339+141
280340 financial audits, and as the auditor determines is necessary, conduct performance and
281-137
341+142
282342 special purpose audits, examinations, and reviews of any entity that receives public
283-138
343+143
284344 funds, including a determination of any or all of the following:
285-139
345+144
286346 (i) the honesty and integrity of all the entity's fiscal affairs;
287-140
347+145
288348 (ii) whether the entity's administrators have faithfully complied with legislative intent;
289-141
349+146
290350 (iii) whether the entity's operations have been conducted in an efficient, effective, and
291-142
351+147
292352 cost-efficient manner;
293-143
353+148
294354 (iv) whether the entity's programs have been effective in accomplishing the intended
295-144
355+149
296356 objectives; and
297-145
357+150
298358 (v) whether the entity's management, control, and information systems are adequate,
299-146
359+151
300360 effective, and secure.
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361+152
302362 (b) The auditor may not conduct performance and special purpose audits, examinations,
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363+153
304364 and reviews of any entity that receives public funds if the entity:
305-149
365+154
306366 (i) has an elected auditor; and
307-150
367+155
308368 (ii) has, within the entity's last budget year, had the entity's financial statements or
309-151
369+156
310370 performance formally reviewed by another outside auditor.
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371+157
312372 (5) The state auditor:
313-153
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314374 (a) shall administer any oath or affirmation necessary to the performance of the duties of
315-154
375+159
316376 the auditor's office; and
317-155
377+160
318378 (b) may:
319-156
379+161
320380 (i) subpoena witnesses and documents, whether electronic or otherwise; and
321-157
381+162
322382 (ii) examine into any matter that the auditor considers necessary.
323-158
383+163
324384 (6) The state auditor may require all persons who have had the disposition or management
325-159
385+164
326386 of any property of this state or its political subdivisions to submit statements regarding
327-160
387+165
328388 the property at the time and in the form that the auditor requires.
329-161
389+166
330390 (7) The state auditor shall:
331-162
391+167
332392 (a) except where otherwise provided by law, institute suits in Salt Lake County in
333-163
393+168
334394 relation to the assessment, collection, and payment of revenues against:
335-- 5 - H.B. 77 Enrolled Copy
336-164
395+169
337396 (i) persons who by any means have become entrusted with public money or property
338-165
397+170
339398 and have failed to pay over or deliver the money or property; and
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399+171
341400 (ii) all debtors of the state;
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401+- 6 - 02-28 11:37 1st Sub. (Buff) H.B. 77
402+172
343403 (b) collect and pay into the state treasury all fees received by the state auditor;
344-168
404+173
345405 (c) perform the duties of a member of all boards of which the state auditor is a member
346-169
406+174
347407 by the constitution or laws of the state, and any other duties that are prescribed by the
348-170
408+175
349409 constitution and by law;
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410+176
351411 (d) stop the payment of the salary of any state official or state employee who:
352-172
412+177
353413 (i) refuses to settle accounts or provide required statements about the custody and
354-173
414+178
355415 disposition of public funds or other state property;
356-174
416+179
357417 (ii) refuses, neglects, or ignores the instruction of the state auditor or any controlling
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418+180
359419 board or department head with respect to the manner of keeping prescribed
360-176
420+181
361421 accounts or funds; or
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422+182
363423 (iii) fails to correct any delinquencies, improper procedures, and errors brought to the
364-178
424+183
365425 official's or employee's attention;
366-179
426+184
367427 (e) establish accounting systems, methods, and forms for public accounts in all taxing or
368-180
428+185
369429 fee-assessing units of the state in the interest of uniformity, efficiency, and economy;
370-181
430+186
371431 (f) superintend the contractual auditing of all state accounts;
372-182
432+187
373433 (g) subject to Subsection (8)(a), withhold state allocated funds or the disbursement of
374-183
434+188
375435 property taxes from a state or local taxing or fee-assessing unit, if necessary, to
376-184
436+189
377437 ensure that officials and employees in those taxing units comply with state laws and
378-185
438+190
379439 procedures in the budgeting, expenditures, and financial reporting of public funds;
380-186
440+191
381441 (h) subject to Subsection (9), withhold the disbursement of tax money from any county,
382-187
442+192
383443 if necessary, to ensure that officials and employees in the county comply with
384-188
444+193
385445 Section 59-2-303.1; and
386-189
446+194
387447 (i) withhold state allocated funds or the disbursement of property taxes from a local
388-190
448+195
389449 government entity or a limited purpose entity, as those terms are defined in Section
390-191
450+196
391451 67-1a-15 if the state auditor finds the withholding necessary to ensure that the entity
392-192
452+197
393453 registers and maintains the entity's registration with the lieutenant governor, in
394-193
454+198
395455 accordance with Section 67-1a-15.
396-194
456+199
397457 (8)(a) Except as otherwise provided by law, the state auditor may not withhold funds
398-195
458+200
399459 under Subsection (7)(g) until a state or local taxing or fee-assessing unit has received
400-196
460+201
401461 formal written notice of noncompliance from the auditor and has been given 60 days
402-197
462+202
403463 to make the specified corrections.
404-- 6 - Enrolled Copy H.B. 77
405-198
464+203
406465 (b) If, after receiving notice under Subsection (8)(a), a state or independent local
407-199
466+204
408467 fee-assessing unit that exclusively assesses fees has not made corrections to comply
409-200
468+205
410469 with state laws and procedures in the budgeting, expenditures, and financial reporting
411-201
470+- 7 - 1st Sub. (Buff) H.B. 77 02-28 11:37
471+206
412472 of public funds, the state auditor:
413-202
473+207
414474 (i) shall provide a recommended timeline for corrective actions;
415-203
475+208
416476 (ii) may prohibit the state or local fee-assessing unit from accessing money held by
417-204
477+209
418478 the state; and
419-205
479+210
420480 (iii) may prohibit a state or local fee-assessing unit from accessing money held in an
421-206
481+211
422482 account of a financial institution by filing an action in a court with jurisdiction
423-207
483+212
424484 under Title 78A, Judiciary and Judicial Administration, requesting an order of the
425-208
485+213
426486 court to prohibit a financial institution from providing the fee-assessing unit
427-209
487+214
428488 access to an account.
429-210
430-(c) The state auditor shall remove a limitation on accessing funds under Subsection (8)(b)
431-211
432-upon compliance with state laws and procedures in the budgeting, expenditures, and
433-212
434-financial reporting of public funds.
435-213
489+215
490+(c) The state auditor shall remove a limitation on accessing funds under Subsection
491+216
492+(8)(b) upon compliance with state laws and procedures in the budgeting,
493+217
494+expenditures, and financial reporting of public funds.
495+218
436496 (d) If a local taxing or fee-assessing unit has not adopted a budget in compliance with
437-214
497+219
438498 state law, the state auditor:
439-215
499+220
440500 (i) shall provide notice to the taxing or fee-assessing unit of the unit's failure to
441-216
501+221
442502 comply;
443-217
503+222
444504 (ii) may prohibit the taxing or fee-assessing unit from accessing money held by the
445-218
505+223
446506 state; and
447-219
507+224
448508 (iii) may prohibit a taxing or fee-assessing unit from accessing money held in an
449-220
509+225
450510 account of a financial institution by:
451-221
511+226
452512 (A) contacting the taxing or fee-assessing unit's financial institution and
453-222
513+227
454514 requesting that the institution prohibit access to the account; or
455-223
515+228
456516 (B) filing an action in a court with jurisdiction under Title 78A, Judiciary and
457-224
517+229
458518 Judicial Administration, requesting an order of the court to prohibit a financial
459-225
519+230
460520 institution from providing the taxing or fee-assessing unit access to an account.
461-226
521+231
462522 (e) If the local taxing or fee-assessing unit adopts a budget in compliance with state law,
463-227
523+232
464524 the state auditor shall eliminate a limitation on accessing funds described in
465-228
525+233
466526 Subsection (8)(d).
467-229
527+234
468528 (9) The state auditor may not withhold funds under Subsection (7)(h) until a county has
469-230
529+235
470530 received formal written notice of noncompliance from the auditor and has been given 60
471-231
531+236
472532 days to make the specified corrections.
473-- 7 - H.B. 77 Enrolled Copy
474-232
533+237
475534 (10)(a) The state auditor may not withhold funds under Subsection (7)(i) until the state
476-233
535+238
477536 auditor receives a notice of non-registration, as that term is defined in Section
478-234
537+239
479538 67-1a-15.
480-235
539+- 8 - 02-28 11:37 1st Sub. (Buff) H.B. 77
540+240
481541 (b) If the state auditor receives a notice of non-registration, the state auditor may
482-236
542+241
483543 prohibit the local government entity or limited purpose entity, as those terms are
484-237
544+242
485545 defined in Section 67-1a-15, from accessing:
486-238
546+243
487547 (i) money held by the state; and
488-239
548+244
489549 (ii) money held in an account of a financial institution by:
490-240
550+245
491551 (A) contacting the entity's financial institution and requesting that the institution
492-241
552+246
493553 prohibit access to the account; or
494-242
554+247
495555 (B) filing an action in a court with jurisdiction under Title 78A, Judiciary and
496-243
556+248
497557 Judicial Administration, requesting an order of the court to prohibit a financial
498-244
558+249
499559 institution from providing the entity access to an account.
500-245
560+250
501561 (c) The state auditor shall remove the prohibition on accessing funds described in
502-246
562+251
503563 Subsection (10)(b) if the state auditor received a notice of registration, as that term is
504-247
564+252
505565 defined in Section 67-1a-15, from the lieutenant governor.
506-248
566+253
507567 (11) Notwithstanding Subsection (7)(g), (7)(h), (7)(i), (8)(b), (8)(d), or (10)(b), the state
508-249
568+254
509569 auditor:
510-250
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511571 (a) shall authorize a disbursement by a local government entity or limited purpose entity,
512-251
572+256
513573 as those terms are defined in Section 67-1a-15, or a state or local taxing or
514-252
574+257
515575 fee-assessing unit if the disbursement is necessary to:
516-253
576+258
517577 (i) avoid a major disruption in the operations of the local government entity, limited
518-254
578+259
519579 purpose entity, or state or local taxing or fee-assessing unit; or
520-255
580+260
521581 (ii) meet debt service obligations; and
522-256
582+261
523583 (b) may authorize a disbursement by a local government entity, limited purpose entity,
524-257
584+262
525585 or state or local taxing or fee-assessing unit as the state auditor determines is
526-258
586+263
527587 appropriate.
528-259
588+264
529589 (12)(a) The state auditor may seek relief under the Utah Rules of Civil Procedure to take
530-260
590+265
531591 temporary custody of public funds if an action is necessary to protect public funds
532-261
592+266
533593 from being improperly diverted from their intended public purpose.
534-262
594+267
535595 (b) If the state auditor seeks relief under Subsection (12)(a):
536-263
596+268
537597 (i) the state auditor is not required to exhaust the procedures in Subsection (7) or (8);
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598+269
539599 and
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541601 (ii) the state treasurer may hold the public funds in accordance with Section 67-4-1 if
542-- 8 - Enrolled Copy H.B. 77
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602+271
544603 a court orders the public funds to be protected from improper diversion from their
545-267
604+272
546605 public purpose.
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606+273
548607 (13) The state auditor shall:
549-269
608+- 9 - 1st Sub. (Buff) H.B. 77 02-28 11:37
609+274
550610 (a) establish audit guidelines and procedures for audits of local mental health and
551-270
611+275
552612 substance abuse authorities and their contract providers, conducted pursuant to Title
553-271
613+276
554614 17, Chapter 43, Part 2, Local Substance Abuse Authorities, Title 17, Chapter 43, Part
555-272
615+277
556616 3, Local Mental Health Authorities, Title 26B, Chapter 5, Health Care - Substance
557-273
617+278
558618 Use and Mental Health, and Title 51, Chapter 2a, Accounting Reports from Political
559-274
619+279
560620 Subdivisions, Interlocal Organizations, and Other Local Entities Act; and
561-275
621+280
562622 (b) ensure that those guidelines and procedures provide assurances to the state that:
563-276
623+281
564624 (i) state and federal funds appropriated to local mental health authorities are used for
565-277
625+282
566626 mental health purposes;
567-278
627+283
568628 (ii) a private provider under an annual or otherwise ongoing contract to provide
569-279
629+284
570630 comprehensive mental health programs or services for a local mental health
571-280
631+285
572632 authority is in compliance with state and local contract requirements and state and
573-281
633+286
574634 federal law;
575-282
635+287
576636 (iii) state and federal funds appropriated to local substance abuse authorities are used
577-283
637+288
578638 for substance abuse programs and services; and
579-284
639+289
580640 (iv) a private provider under an annual or otherwise ongoing contract to provide
581-285
641+290
582642 comprehensive substance abuse programs or services for a local substance abuse
583-286
643+291
584644 authority is in compliance with state and local contract requirements, and state and
585-287
645+292
586646 federal law.
587-288
647+293
588648 (14)(a) The state auditor may, in accordance with the auditor's responsibilities for
589-289
649+294
590650 political subdivisions of the state as provided in Title 51, Chapter 2a, Accounting
591-290
651+295
592652 Reports from Political Subdivisions, Interlocal Organizations, and Other Local
593-291
653+296
594654 Entities Act, initiate audits or investigations of any political subdivision that are
595-292
655+297
596656 necessary to determine honesty and integrity in fiscal affairs, accuracy and reliability
597-293
657+298
598658 of financial statements, effectiveness, and adequacy of financial controls and
599-294
659+299
600660 compliance with the law.
601-295
661+300
602662 (b) If the state auditor receives notice under Subsection 11-41-104(7) from the
603-296
663+301
604664 Governor's Office of Economic Opportunity on or after July 1, 2024, the state auditor
605-297
665+302
606666 may initiate an audit or investigation of the public entity subject to the notice to
607-298
667+303
608668 determine compliance with Section 11-41-103.
609-299
669+304
610670 (15)(a) The state auditor may not audit work that the state auditor performed before
611-- 9 - H.B. 77 Enrolled Copy
612-300
671+305
613672 becoming state auditor.
614-301
673+306
615674 (b) If the state auditor has previously been a responsible official in state government
616-302
675+307
617676 whose work has not yet been audited, the Legislature shall:
618-303
677+- 10 - 02-28 11:37 1st Sub. (Buff) H.B. 77
678+308
619679 (i) designate how that work shall be audited; and
620-304
680+309
621681 (ii) provide additional funding for those audits, if necessary.
622-305
682+310
623683 (16) The state auditor shall:
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684+311
625685 (a) with the assistance, advice, and recommendations of an advisory committee
626-307
686+312
627687 appointed by the state auditor from among special district boards of trustees, officers,
628-308
688+313
629689 and employees and special service district boards, officers, and employees:
630-309
690+314
631691 (i) prepare a Uniform Accounting Manual for Special Districts that:
632-310
692+315
633693 (A) prescribes a uniform system of accounting and uniform budgeting and
634-311
694+316
635695 reporting procedures for special districts under Title 17B, Limited Purpose
636-312
696+317
637697 Local Government Entities - Special Districts, and special service districts
638-313
698+318
639699 under Title 17D, Chapter 1, Special Service District Act;
640-314
700+319
641701 (B) conforms with generally accepted accounting principles; and
642-315
702+320
643703 (C) prescribes reasonable exceptions and modifications for smaller districts to the
644-316
704+321
645705 uniform system of accounting, budgeting, and reporting;
646-317
706+322
647707 (ii) maintain the manual under this Subsection (16)(a) so that the manual continues to
648-318
708+323
649709 reflect generally accepted accounting principles;
650-319
710+324
651711 (iii) conduct a continuing review and modification of procedures in order to improve
652-320
712+325
653713 them;
654-321
714+326
655715 (iv) prepare and supply each district with suitable budget and reporting forms; and
656-322
716+327
657717 (v)(A) prepare instructional materials, conduct training programs, and render other
658-323
718+328
659719 services considered necessary to assist special districts and special service
660-324
720+329
661721 districts in implementing the uniform accounting, budgeting, and reporting
662-325
722+330
663723 procedures; and
664-326
724+331
665725 (B) ensure that any training described in Subsection (16)(a)(v)(A) complies with
666-327
726+332
667727 Title 63G, Chapter 22, State Training and Certification Requirements; and
668-328
728+333
669729 (b) continually analyze and evaluate the accounting, budgeting, and reporting practices
670-329
730+334
671731 and experiences of specific special districts and special service districts selected by
672-330
732+335
673733 the state auditor and make the information available to all districts.
674-331
734+336
675735 (17)(a) The following records in the custody or control of the state auditor are protected
676-332
736+337
677737 records under Title 63G, Chapter 2, Government Records Access and Management
678-333
738+338
679739 Act:
680-- 10 - Enrolled Copy H.B. 77
681-334
740+339
682741 (i) records that would disclose information relating to allegations of personal
683-335
742+340
684743 misconduct, gross mismanagement, or illegal activity of a past or present
685-336
744+341
686745 governmental employee if the information or allegation cannot be corroborated by
687-337
746+- 11 - 1st Sub. (Buff) H.B. 77 02-28 11:37
747+342
688748 the state auditor through other documents or evidence, and the records relating to
689-338
749+343
690750 the allegation are not relied upon by the state auditor in preparing a final audit
691-339
751+344
692752 report;
693-340
753+345
694754 (ii) records and audit workpapers to the extent the workpapers would disclose the
695-341
755+346
696756 identity of an individual who during the course of an audit, communicated the
697-342
757+347
698758 existence of any waste of public funds, property, or manpower, or a violation or
699-343
759+348
700760 suspected violation of a law, rule, or regulation adopted under the laws of this
701-344
761+349
702762 state, a political subdivision of the state, or any recognized entity of the United
703-345
763+350
704764 States, if the information was disclosed on the condition that the identity of the
705-346
765+351
706766 individual be protected;
707-347
767+352
708768 (iii) before an audit is completed and the final audit report is released, records or
709-348
769+353
710770 drafts circulated to an individual who is not an employee or head of a
711-349
771+354
712772 governmental entity for the individual's response or information;
713-350
773+355
714774 (iv) records that would disclose an outline or part of any audit survey plans or audit
715-351
775+356
716776 program; and
717-352
777+357
718778 (v) requests for audits, if disclosure would risk circumvention of an audit.
719-353
779+358
720780 (b) The provisions of Subsections (17)(a)(i), (ii), and (iii) do not prohibit the disclosure
721-354
781+359
722782 of records or information that relate to a violation of the law by a governmental entity
723-355
783+360
724784 or employee to a government prosecutor or peace officer.
725-356
785+361
726786 (c) The provisions of this Subsection (17) do not limit the authority otherwise given to
727-357
787+362
728788 the state auditor to classify a document as public, private, controlled, or protected
729-358
789+363
730790 under Title 63G, Chapter 2, Government Records Access and Management Act.
731-359
791+364
732792 (d)(i) As used in this Subsection (17)(d), "record dispute" means a dispute between
733-360
793+365
734794 the state auditor and the subject of an audit performed by the state auditor as to
735-361
795+366
736796 whether the state auditor may release a record, as defined in Section 63G-2-103,
737-362
797+367
738798 to the public that the state auditor gained access to in the course of the state
739-363
799+368
740800 auditor's audit but which the subject of the audit claims is not subject to disclosure
741-364
801+369
742802 under Title 63G, Chapter 2, Government Records Access and Management Act.
743-365
803+370
744804 (ii) The state auditor may submit a record dispute to the State Records Committee,
745-366
805+371
746806 created in Section 63G-2-501, for a determination of whether the state auditor
747-367
807+372
748808 may, in conjunction with the state auditor's release of an audit report, release to
749-- 11 - H.B. 77 Enrolled Copy
750-368
809+373
751810 the public the record that is the subject of the record dispute.
752-369
811+374
753812 (iii) The state auditor or the subject of the audit may seek judicial review of a State
754-370
813+375
755814 Records Committee determination under Subsection (17)(d)(ii), as provided in
756-371
815+- 12 - 02-28 11:37 1st Sub. (Buff) H.B. 77
816+376
757817 Section 63G-2-404.
758-372
818+377
759819 (18) If the state auditor conducts an audit of an entity that the state auditor has previously
760-373
820+378
761821 audited and finds that the entity has not implemented a recommendation made by the
762-374
822+379
763823 state auditor in a previous audit, the state auditor shall notify the Legislative
764-375
824+380
765825 Management Committee through the Legislative Management Committee's audit
766-376
826+381
767827 subcommittee that the entity has not implemented that recommendation.
768-377
828+382
769829 (19) The state auditor shall, with the advice and consent of the Senate, appoint the state
770-378
830+383
771831 privacy officer described in Section 67-3-13.
772-379
832+384
773833 (20) Except as provided in Subsection (21), the state auditor shall report, or ensure that
774-380
834+385
775835 another government entity reports, on the financial, operational, and performance
776-381
836+386
777837 metrics for the state system of higher education and the state system of public education,
778-382
838+387
779839 including metrics in relation to students, programs, and schools within those systems.
780-383
840+388
781841 (21)(a) Notwithstanding Subsection (20), the state auditor shall conduct regular audits of:
782-384
842+389
783843 (i) the scholarship granting organization for the Carson Smith Opportunity
784-385
844+390
785845 Scholarship Program, created in Section 53E-7-402;
786-386
846+391
787847 (ii) the State Board of Education for the Carson Smith Scholarship Program, created
788-387
848+392
789849 in Section 53F-4-302; and
790-388
850+393
791851 (iii) the scholarship program manager for the Utah Fits All Scholarship Program,
792-389
852+394
793853 created in Section 53F-6-402, including an analysis of the cost effectiveness of the
794-390
854+395
795855 program, taking into consideration the amount of the scholarship and the amount
796-391
856+396
797857 of state and local funds dedicated on a per-student basis within the traditional
798-392
858+397
799859 public education system.
800-393
860+398
801861 (b) Nothing in this subsection limits or impairs the authority of the State Board of
802-394
862+399
803863 Education to administer the programs described in Subsection (21)(a).
804-395
864+400
805865 (22) The state auditor shall, based on the information posted by the Office of Legislative
806-396
866+401
807867 Research and General Counsel under Subsection 36-12-12.1(2), for each policy, track
808-397
868+402
809869 and post the following information on the state auditor's website:
810-398
870+403
811871 (a) the information posted under Subsections 36-12-12.1(2)(a) through (e);
812-399
872+404
813873 (b) an indication regarding whether the policy is timely adopted, adopted late, or not
814-400
874+405
815875 adopted;
816-401
876+406
817877 (c) an indication regarding whether the policy complies with the requirements
818-- 12 - Enrolled Copy H.B. 77
819-402
878+407
820879 established by law for the policy; and
821-403
880+408
822881 (d) a link to the policy.
823-404
882+409
824883 (23)(a) A legislator may request that the state auditor conduct an inquiry to determine
825-405
884+- 13 - 1st Sub. (Buff) H.B. 77 02-28 11:37
885+410
826886 whether a government entity, government official, or government employee has
827-406
887+411
828888 complied with a legal obligation directly imposed, by statute, on the government
829-407
889+412
830890 entity, government official, or government employee.
831-408
891+413
832892 (b) The state auditor may, upon receiving a request under Subsection (23)(a), conduct
833-409
893+414
834894 the inquiry requested.
835-410
895+415
836896 (c) If the state auditor conducts the inquiry described in Subsection (23)(b), the state
837-411
897+416
838898 auditor shall post the results of the inquiry on the state auditor's website.
839-412
899+417
840900 (d) The state auditor may limit the inquiry described in this Subsection (23) to a simple
841-413
901+418
842902 determination, without conducting an audit, regarding whether the obligation was
843-414
903+419
844904 fulfilled.
845-415
905+420
846906 (24) The state auditor shall:
847-416
907+421
848908 (a) ensure compliance with Title 63G, Chapter 31, Distinctions on the Basis of Sex, in
849-417
909+422
850910 accordance with Section 63G-31-401; and
851-418
911+423
852912 (b) report to the Legislative Management Committee, upon request, regarding the state
853-419
913+424
854914 auditor's actions under this Subsection (24).
855-420
915+425
856916 (25) The state auditor shall report compliance with Sections 67-27-107, 67-27-108, and
857-421
917+426
858918 67-27-109 by:
859-422
919+427
860920 (a) establishing a process to receive and audit each alleged violation; and
861-423
921+428
862922 (b) reporting to the Legislative Management Committee, upon request, regarding the
863-424
923+429
864924 state auditor's findings and recommendations under this Subsection (25).
865-425
925+430
866926 (26) The state auditor shall ensure compliance with Section 63G-1-704 regarding the
867-426
927+431
868928 display of flags in or on government property.
869-427
929+432
870930 Section 3. Effective Date.
871-428
931+433
872932 This bill takes effect on May 7, 2025.
873-- 13 -
933+- 14 -