UT
Utah Senate Bill SB0154

Utah 2025 Regular Session

Utah Senate Bill SB0154 Compare Versions

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1-Enrolled Copy S.B. 154
1+03-07 09:37 2nd Sub. (Salmon) S.B. 154
2+Anthony E. Loubet proposes the following substitute bill:
23 1
34 Legislative Audit Amendments
45 2025 GENERAL SESSION
56 STATE OF UTAH
67 Chief Sponsor: Brady Brammer
78 House Sponsor: Jordan D. Teuscher
89 2
910
1011 3
1112 LONG TITLE
1213 4
1314 General Description:
1415 5
15-This bill enacts and amends provisions governing the duties and powers of the legislative
16+This bill enacts provisions related to certain information provided to the legislative auditor
1617 6
17-auditor general.
18+general.
1819 7
1920 Highlighted Provisions:
2021 8
2122 This bill:
2223 9
2324 ▸ restates the authority of the legislative auditor general;
2425 10
25-▸ amends provisions governing information that may be subject to federal law and is
26+▸ excludes certain information provided to the legislative auditor general from the
2627 11
27-requested by the legislative auditor general from an entity, including the State Tax
28+definition of "record";
2829 12
29-Commission;
30+▸ permits an entity to provide certain privileged items to the legislative auditor general;
3031 13
31-▸ excludes certain information provided to the legislative auditor general from the
32+▸ requires an entity that withholds certain privileged items from the legislative auditor
3233 14
33-definition of "record";
34+general to expressly assert a privilege;
3435 15
35-▸ permits an entity to provide certain privileged items to the legislative auditor general;
36+▸ permits the legislative auditor general to contest a privilege claim;
3637 16
37-▸ requires an entity that withholds certain privileged items from the legislative auditor
38+▸ requires, in certain circumstances, an entity to submit privileged items to an arbitrator to
3839 17
39-general to expressly assert a privilege;
40+determine a privilege claim;
4041 18
41-▸ permits the legislative auditor general to contest a privilege claim;
42+▸ coordinates enactment of provisions with S.J.R. 4, Joint Resolution Amending Court
4243 19
43-▸ requires, in certain circumstances, an entity to submit privileged items to an arbitrator to
44+Rules on Attorney Confidentiality; and
4445 20
45-determine a privilege claim;
46+▸ makes technical corrections.
4647 21
47-▸ authorizes the legislative auditor general to provide certain information to an audited
48+Money Appropriated in this Bill:
4849 22
49-entity;
50+None
5051 23
51-▸ amends the definition of "chief officer" for purposes of an entity responding to a
52+Other Special Clauses:
5253 24
53-legislative audit;
54+This bill provides a coordination clause.
5455 25
55-▸ amends provisions governing an audit response plan and an update to a plan;
56+Utah Code Sections Affected:
5657 26
57-▸ authorizes the legislative auditor general to review and monitor the Utah System of
58+AMENDS:
5859 27
59-Higher Education; S.B. 154 Enrolled Copy
60+36-12-15, as last amended by Laws of Utah 2024, Third Special Session, Chapter 3
6061 28
61-▸ coordinates enactment of provisions with S.J.R. 4, Joint Resolution Amending Court
62+Utah Code Sections affected by Coordination Clause:
63+2nd Sub. S.B. 154 2nd Sub. (Salmon) S.B. 154 03-07 09:37
6264 29
63-Rules on Attorney Confidentiality; and
65+36-12-15, as last amended by Laws of Utah 2024, Third Special Session, Chapter 3
6466 30
65-▸ makes technical corrections.
67+
6668 31
67-Money Appropriated in this Bill:
69+Be it enacted by the Legislature of the state of Utah:
6870 32
69-None
71+The following section is affected by a coordination clause at the end of this bill.
7072 33
71-Other Special Clauses:
73+Section 1. Section 36-12-15 is amended to read:
7274 34
73-None
75+36-12-15 . Office of the Legislative Auditor General established -- Qualifications
7476 35
75-Utah Code Sections Affected:
77+-- Powers, functions, and duties -- Reporting -- Criminal penalty -- Employment.
7678 36
77-AMENDS:
79+(1) As used in this section:
7880 37
79-36-12-15 (Effective 05/07/25) (Applies beginning 06/21/24), as last amended by Laws of
81+(a) "Audit action" means an audit, examination, investigation, or review of an entity
8082 38
81-Utah 2024, Third Special Session, Chapter 3
83+conducted by the office.
8284 39
83-36-12-15.3 (Effective 05/07/25), as enacted by Laws of Utah 2024, Chapter 403
85+(b) "Entity" means:
8486 40
85-53F-2-526 (Effective 05/07/25), as enacted by Laws of Utah 2024, Chapter 374
87+(i) a government organization; or
8688 41
87-59-1-403 (Effective 05/07/25), as last amended by Laws of Utah 2024, Chapters 25, 35
89+(ii) a receiving organization.
8890 42
89-ENACTS:
91+(c) "Government organization" means:
9092 43
91-36-12-15.4 (Effective 05/07/25), Utah Code Annotated 1953
93+(i) a state branch, department, or agency; or
9294 44
93-
95+(ii) a political subdivision, including a county, municipality, special district, special
9496 45
95-Be it enacted by the Legislature of the state of Utah:
97+service district, school district, interlocal entity as defined in Section 11-13-103,
9698 46
97-The following section is affected by a coordination clause at the end of this bill.
99+or any other local government unit.
98100 47
99-Section 1. Section 36-12-15 is amended to read:
101+(d) "Office" means the Office of the Legislative Auditor General.
100102 48
101-36-12-15 (Effective 05/07/25) (Applies beginning 06/21/24). Office of the
103+(e) "Receiving organization" means an organization that receives public funds that is not
102104 49
103-Legislative Auditor General established -- Qualifications -- Powers, functions, and duties
105+a government organization.
104106 50
105--- Reporting -- Criminal penalty -- Employment.
107+(2)(a) There is created the Office of the Legislative Auditor General as a permanent staff
106108 51
107-(1) As used in this section:
109+office for the Legislature.
108110 52
109-(a) "Audit action" means an audit, examination, investigation, or review of an entity
111+(b) The authority of the legislative auditor general is:
110112 53
111-conducted by the office.
113+(i) established in Utah Constitution, Article VI, Section 33; and
112114 54
113-(b) "Entity" means:
115+(ii) an extension of the Legislature's inherent inquiry and investigatory power.
114116 55
115-(i) a government organization; or
117+(3) The legislative auditor general shall be a licensed certified public accountant or certified
116118 56
117-(ii) a receiving organization.
119+internal auditor with at least seven years of experience in the auditing or public
118120 57
119-(c) "Government organization" means:
121+accounting profession, or the equivalent, prior to appointment.
120122 58
121-(i) a state branch, department, or agency; or
123+(4) The legislative auditor general shall appoint and develop a professional staff within
122124 59
123-(ii) a political subdivision, including a county, municipality, special district, special
125+budget limitations.
124126 60
125-service district, school district, interlocal entity as defined in Section 11-13-103,
127+(5) The office shall exercise the constitutional authority provided in Utah Constitution,
126128 61
127-or any other local government unit.
128-- 2 - Enrolled Copy S.B. 154
129+Article VI, Section 33.
129130 62
130-(d) "Office" means the Office of the Legislative Auditor General.
131+(6) Under the direction of the legislative auditor general, the office shall:
132+- 2 - 03-07 09:37 2nd Sub. (Salmon) S.B. 154
131133 63
132-(e) "Receiving organization" means an organization that receives public funds that is not
134+(a) conduct comprehensive and special purpose audits, examinations, investigations, or
133135 64
134-a government organization.
136+reviews of entity funds, functions, and accounts;
135137 65
136-(2)(a) There is created the Office of the Legislative Auditor General as a permanent staff
138+(b) prepare and submit a written report on each audit action to the Audit Subcommittee
137139 66
138-office for the Legislature.
140+created in Section 36-12-8 and make the report available to all members of the
139141 67
140-(b) The authority of the legislative auditor general is:
142+Legislature within 75 days after the audit action is completed;
141143 68
142-(i) established in Utah Constitution, Article VI, Section 33; and
144+(c) monitor, conduct a risk assessment of, or audit any efficiency evaluations that the
143145 69
144-(ii) an extension of the Legislature's inherent inquiry and investigatory power.
146+legislative auditor general determines necessary, in accordance with Title 63J,
145147 70
146-(3) The legislative auditor general shall be a licensed certified public accountant or certified
148+Chapter 1, Part 9, Government Performance Reporting and Efficiency Process, and
147149 71
148-internal auditor with at least seven years of experience in the auditing or public
150+legislative rule;
149151 72
150-accounting profession, or the equivalent, prior to appointment.
152+(d) create, manage, and report to the Audit Subcommittee a list of high risk programs
151153 73
152-(4) The legislative auditor general shall [appoint] employ and develop a professional staff
154+and operations that:
153155 74
154-within budget limitations.
156+(i) threaten public funds or programs;
155157 75
156-(5) The office shall exercise the constitutional authority provided in Utah Constitution,
158+(ii) are vulnerable to inefficiency, waste, fraud, abuse, or mismanagement; or
157159 76
158-Article VI, Section 33.
160+(iii) require transformation;
159161 77
160-(6) Under the direction of the legislative auditor general, the office shall:
162+(e) monitor and report to the Audit Subcommittee the health of a government
161163 78
162-(a) conduct comprehensive and special purpose audits, examinations, investigations, or
164+organization's internal audit functions;
163165 79
164-reviews of entity funds, functions, and accounts;
166+(f) make recommendations to increase the independence and value added of internal
165167 80
166-(b) prepare and submit a written report on each audit action to the Audit Subcommittee
168+audit functions throughout the state;
167169 81
168-created in Section 36-12-8 and make the report available to all members of the
170+(g) implement a process to track, monitor, and report whether the subject of an audit has
169171 82
170-Legislature within 75 days after the audit action is completed;
172+implemented recommendations made in the audit report;
171173 83
172-(c) monitor, conduct a risk assessment of, or audit any efficiency evaluations that the
174+(h) establish, train, and maintain individuals within the office to conduct investigations
173175 84
174-legislative auditor general determines necessary, in accordance with Title 63J,
176+and represent themselves as lawful investigators on behalf of the office;
175177 85
176-Chapter 1, Part 9, Government Performance Reporting and Efficiency Process, and
178+(i) establish policies, procedures, methods, and standards of audit work and
177179 86
178-legislative rule;
180+investigations for the office and staff;
179181 87
180-(d) create, manage, and report to the Audit Subcommittee a list of high risk programs
182+(j) prepare and submit each audit and investigative report independent of any influence
181183 88
182-and operations that:
184+external of the office, including the content of the report, the conclusions reached in
183185 89
184-(i) threaten public funds or programs;
186+the report, and the manner of disclosing the legislative auditor general's findings;
185187 90
186-(ii) are vulnerable to inefficiency, waste, fraud, abuse, or mismanagement; or
188+(k) prepare and submit the annual budget request for the office; and
187189 91
188-(iii) require transformation;
190+(l) perform other duties as prescribed by the Legislature.
189191 92
190-(e) monitor and report to the Audit Subcommittee the health of a government
192+(7) In conducting an audit action of an entity, the office may include a determination of any
191193 93
192-organization's internal audit functions;
194+or all of the following:
193195 94
194-(f) make recommendations to increase the independence and value added of internal
196+(a) the honesty and integrity of any of the entity's fiscal affairs;
195197 95
196-audit functions throughout the state;
197-- 3 - S.B. 154 Enrolled Copy
198+(b) the accuracy and reliability of the entity's internal control systems and specific
198199 96
199-(g) implement a process to track, monitor, and report whether the subject of an audit has
200+financial statements and reports;
201+- 3 - 2nd Sub. (Salmon) S.B. 154 03-07 09:37
200202 97
201-implemented recommendations made in the audit report;
203+(c) whether or not the entity's financial controls are adequate and effective to properly
202204 98
203-(h) establish, train, and [maintain] retain individuals within the office to conduct
205+record and safeguard the entity's acquisition, custody, use, and accounting of public
204206 99
205-investigations and represent themselves as lawful investigators on behalf of the office;
207+funds;
206208 100
207-(i) establish policies, procedures, methods, and standards of audit work and
209+(d) whether the entity's administrators have complied with legislative intent;
208210 101
209-investigations for the office and staff;
211+(e) whether the entity's operations have been conducted in an efficient, effective, and
210212 102
211-(j) prepare and submit each audit and investigative report independent of any influence
213+cost efficient manner;
212214 103
213-external of the office, including the content of the report, the conclusions reached in
215+(f) whether the entity's programs have been effective in accomplishing intended
214216 104
215-the report, and the manner of disclosing the legislative auditor general's findings;
217+objectives; and
216218 105
217-(k) prepare and submit [the] an annual budget request for the office; and
219+(g) whether the entity's management control and information systems are adequate and
218220 106
219-(l) perform other duties as prescribed by the Legislature.
221+effective.
220222 107
221-(7)(a) In conducting an audit action of an entity, the office may include a determination
223+(8)(a) If requested by the office, each entity that the legislative auditor general is
222224 108
223-of any or all of the following:
225+authorized to audit under Utah Constitution, Article VI, Section 33, or this section
224226 109
225-[(a)] (i) the honesty and integrity of any of the entity's fiscal affairs;
227+shall, notwithstanding any other provision of law except as provided in Subsection
226228 110
227-[(b)] (ii) the accuracy and reliability of the entity's internal control systems and
229+(8)(b), provide the office with access to information, materials, or resources the office
228230 111
229-specific financial statements and reports;
231+determines are necessary to conduct an audit, examination, investigation, or review,
230232 112
231-[(c)] (iii) whether [or not ]the entity's financial controls are adequate and effective to
233+including:
232234 113
233-properly record and safeguard the entity's acquisition, custody, use, and
235+(i) the following in the possession or custody of the entity in the format identified by
234236 114
235-accounting of public funds;
237+the office:
236238 115
237-[(d)] (iv) whether the entity's administrators have complied with legislative intent;
239+(A) a record, document, and report; and
238240 116
239-[(e)] (v) whether the entity's operations have been conducted in an efficient, effective,
241+(B) films, tapes, recordings, and electronically stored information;
240242 117
241-and cost efficient manner;
243+(ii) entity personnel; and
242244 118
243-[(f)] (vi) whether the entity's programs have been effective in accomplishing intended
245+(iii) each official or unofficial recording of formal or informal meetings or
244246 119
245-objectives; and
247+conversations to which the entity has access.
246248 120
247-[(g)] (vii) whether the entity's management control and information systems are
249+(b) To the extent compliance would violate federal law, the requirements of Subsection
248250 121
249-adequate and effective.
251+(8)(a) do not apply.
250252 122
251-(b) The office may provide to an entity that is the subject of an audit action the
253+(9)(a) In carrying out the duties provided for in this section and under Utah Constitution,
252254 123
253-following:
255+Article VI, Section 33, the legislative auditor general may issue a subpoena to access
254256 124
255-(i) the record classification of a draft report of an audit action;
257+information, materials, or resources in accordance with Chapter 14, Legislative
256258 125
257-(ii) opportunity to discuss a draft report of an audit action before release;
259+Subpoena Powers.
258260 126
259-(iii) the contact information of the office's manager or supervisor of an audit action; or
261+(b) The legislative auditor general may issue a subpoena, as described in Subsection
260262 127
261-(iv) any other information related to the audit action.
263+(9)(a), to a financial institution or any other entity to obtain information as part of an
262264 128
263-(8)[(a)] If requested by the office, each entity that the legislative auditor general is
265+investigation of fraud, waste, or abuse, including any suspected malfeasance,
264266 129
265-authorized to audit under Utah Constitution, Article VI, Section 33, or this section
266-- 4 - Enrolled Copy S.B. 154
267+misfeasance, or nonfeasance involving public funds.
267268 130
268-shall, notwithstanding any other provision of law[ except as provided in Subsection
269+(10)(a) As used in this Subsection (10):
270+- 4 - 03-07 09:37 2nd Sub. (Salmon) S.B. 154
269271 131
270-(8)(b)], provide the office with access to information, materials, or resources the
272+(i) "Bad faith" means an action or inaction that is unambiguously not authorized
271273 132
272-office determines are necessary to conduct an audit, examination, investigation, or
274+under an authority described in Subsection (10)(a)(iii)(A), (B), or (C).
273275 133
274-review, including:
276+(ii) "Item" means information, materials, or resources described in Subsection (8)(a).
275277 134
276-[(i)] (a) the following in the possession or custody of the entity in the format identified
278+(iii) "Privileged item" means an item that is an attorney-client communication,
277279 135
278-by the office:
280+attorney work product, or information relating to representation of the entity,
279281 136
280-[(A)] (i) a record, document, and report; and
282+governed by:
281283 137
282-[(B)] (ii) films, tapes, recordings, and electronically stored information;
284+(A) Utah Rules of Professional Conduct, Rule 1.6;
283285 138
284-[(ii)] (b) entity personnel; and
286+(B) Utah Rules of Evidence, Rule 504; or
285287 139
286-[(iii)] (c) each official or unofficial recording of formal or informal meetings or
288+(C) Utah Rules of Civil Procedure, Rule 26.
287289 140
288-conversations to which the entity has access.
290+(b) If an entity discloses information to the legislative auditor general that is confidential
289291 141
290-[(b) To the extent compliance would violate federal law, the requirements of Subsection
292+under Utah Rules of Professional Conduct, Rule 1.6, the disclosure is authorized in
291293 142
292-(8)(a) do not apply.]
294+accordance with Utah Rules of Professional Conduct, Rule 1.6(b)(6), and does not
293295 143
294-(9)(a) In carrying out the duties provided for in this section and under Utah Constitution,
296+make the information discoverable or prevent the entity from claiming that the
295297 144
296-Article VI, Section 33, the legislative auditor general may issue a subpoena to access
298+information is privileged in another proceeding.
297299 145
298-information, materials, or resources in accordance with Chapter 14, Legislative
300+(c) If requested by the legislative auditor general for an audit action, an entity may
299301 146
300-Subpoena Powers.
302+provide a privileged item.
301303 147
302-(b) The legislative auditor general may issue a subpoena, as described in Subsection
304+(d) If an entity withholds an item after a request by the legislative auditor general for an
303305 148
304-(9)(a), to a financial institution or any other entity to obtain information as part of an
306+audit action, the entity shall, for each instance in which the entity asserts privilege,
305307 149
306-investigation [of] involving public funds and fraud, waste, or abuse, including any
308+submit to the legislative auditor general a written statement:
307309 150
308-suspected malfeasance, misfeasance, or nonfeasance[ involving public funds].
310+(i) expressly asserting the privilege and the authority for the privilege claim; and
309311 151
310-(10)(a) As used in this Subsection (10):
312+(ii) for each privilege claim, describing the nature of the item in a manner that,
311313 152
312-(i) "Bad faith" means an action or inaction that is unambiguously not authorized
314+without revealing the attorney-client communication, attorney work product, or
313315 153
314-under an authority described in Subsection (10)(a)(iii)(A), (B), or (C).
316+representation information itself, enables the legislative auditor general to evaluate
315317 154
316-(ii) "Item" means information, materials, or resources described in Subsection (8).
318+the privilege claim.
317319 155
318-(iii) "Privileged item" means an item that is an attorney-client communication,
320+(e) The legislative auditor general may contest a privilege claim asserted under
319321 156
320-attorney work product, or information relating to representation of the entity,
322+Subsection (10)(d) by:
321323 157
322-governed by:
324+(i) notifying the entity in writing of each contested privilege claim and providing the
323325 158
324-(A) Utah Rules of Professional Conduct, Rule 1.6;
326+list of available arbitrators described in Subsection (10)(f); and
325327 159
326-(B) Utah Rules of Evidence, Rule 504; or
328+(ii) submitting each contested privilege claim to the arbitrator selected in accordance
327329 160
328-(C) Utah Rules of Civil Procedure, Rule 26.
330+with Subsection (10)(f).
329331 161
330-(b) If an entity discloses information to the legislative auditor general that is confidential
332+(f)(i) The legislative auditor general shall:
331333 162
332-under Utah Rules of Professional Conduct, Rule 1.6, the disclosure is authorized in
334+(A) maintain a list of three arbitrators; and
333335 163
334-accordance with Utah Rules of Professional Conduct, Rule 1.6(b)(6), and does not
335-- 5 - S.B. 154 Enrolled Copy
336+(B) engage an arbitrator selected in accordance with this Subsection (10)(f).
336337 164
337-make the information discoverable or prevent the entity from claiming that the
338+(ii) No later than three business days after receiving the notification under Subsection
339+- 5 - 2nd Sub. (Salmon) S.B. 154 03-07 09:37
338340 165
339-information is privileged in another proceeding.
341+(10)(e)(i), the entity may select an arbitrator from the list provided by the
340342 166
341-(c) If requested by the legislative auditor general for an audit action, an entity may
343+legislative auditor general.
342344 167
343-provide a privileged item.
345+(iii) If an entity fails to select an arbitrator in accordance with Subsection (10)(f)(ii),
344346 168
345-(d) If an entity withholds an item after a request by the legislative auditor general for an
347+the legislative auditor general shall select an arbitrator from the list.
346348 169
347-audit action, the entity shall, for each instance in which the entity asserts privilege,
349+(iv) The arbitrator shall be licensed to practice law in the state of Utah and in good
348350 170
349-submit to the legislative auditor general a written statement:
351+standing.
350352 171
351-(i) expressly asserting the privilege and the authority for the privilege claim; and
353+(v) Subject to Subsection (10)(i)(ii), the entity and the legislative auditor general shall
352354 172
353-(ii) for each privilege claim, describing the nature of the item in a manner that,
355+equally bare the cost of the arbitrator.
354356 173
355-without revealing the attorney-client communication, attorney work product, or
357+(g) The entity:
356358 174
357-representation information itself, enables the legislative auditor general to evaluate
359+(i) shall provide to the arbitrator the item and contested privilege claim no later than
358360 175
359-the privilege claim.
361+seven business days after the arbitrator is engaged under Subsection (10)(f); and
360362 176
361-(e) The legislative auditor general may contest a privilege claim asserted under
363+(ii) may provide supplemental information in support of a privilege claim.
362364 177
363-Subsection (10)(d) by:
365+(h) No later than seven business days after the arbitrator receives the contested privilege
364366 178
365-(i) notifying the entity in writing of each contested privilege claim and providing the
367+claim under Subsection (10)(g)(i), the arbitrator shall:
366368 179
367-list of available arbitrators described in Subsection (10)(f); and
369+(i) conduct an in camera review of each contested item and the authority for the
368370 180
369-(ii) submitting each contested privilege claim to the arbitrator selected in accordance
371+relevant privilege claim;
370372 181
371-with Subsection (10)(f).
373+(ii) review supplemental information submitted under Subsection (10)(g)(ii) and any
372374 182
373-(f)(i) The legislative auditor general shall:
375+supplemental information provided by the legislative auditor general;
374376 183
375-(A) maintain a list of three arbitrators; and
377+(iii) issue a determination as to whether the entity has a valid claim of privilege,
376378 184
377-(B) engage an arbitrator selected in accordance with this Subsection (10)(f).
379+favoring access to the legislative auditor general of material that is not privileged;
378380 185
379-(ii) No later than three business days after receiving the notification under Subsection
381+and
380382 186
381-(10)(e)(i), the entity may select an arbitrator from the list provided by the
383+(iv) issue a determination as to whether the entity acted in bad faith.
382384 187
383-legislative auditor general.
385+(i)(i) If the arbitrator determines that an entity does not have a valid privilege claim,
384386 188
385-(iii) If an entity fails to select an arbitrator in accordance with Subsection (10)(f)(ii),
387+the entity shall provide the withheld item to the legislative auditor general
386388 189
387-the legislative auditor general shall select an arbitrator from the list.
389+immediately.
388390 190
389-(iv) The arbitrator shall be licensed to practice law in the state of Utah and in good
391+(ii) If the arbitrator determines that the entity acted in bad faith, the entity shall bare
390392 191
391-standing.
393+the full cost of the arbitrator.
392394 192
393-(v) Subject to Subsection (10)(i)(ii), the entity and the legislative auditor general shall
395+(j) The arbitrator may not disclose:
394396 193
395-equally bare the cost of the arbitrator.
397+(i) a privileged item; or
396398 194
397-(g) The entity:
399+(ii) supplemental information described in Subsection (10)(g)(ii).
398400 195
399-(i) shall provide to the arbitrator the item and contested privilege claim no later than
401+(k) Provisions of this Subsection (10) are not subject to Title 78B, Chapter 11, Utah
400402 196
401-seven business days after the arbitrator is engaged under Subsection (10)(f); and
403+Uniform Arbitration Act.
402404 197
403-(ii) may provide supplemental information in support of a privilege claim.
404-- 6 - Enrolled Copy S.B. 154
405+[(10)] (11) To preserve the professional integrity and independence of the office:
405406 198
406-(h) No later than seven business days after the arbitrator receives the contested privilege
407+(a) no legislator or public official may urge the appointment of any person to the office;
408+- 6 - 03-07 09:37 2nd Sub. (Salmon) S.B. 154
407409 199
408-claim under Subsection (10)(g)(i), the arbitrator shall:
410+and
409411 200
410-(i) conduct an in camera review of each contested item and the authority for the
412+(b) the legislative auditor general may not be appointed to serve on any board, authority,
411413 201
412-relevant privilege claim;
414+commission, or other agency of the state during the legislative auditor general's term
413415 202
414-(ii) review supplemental information submitted under Subsection (10)(g)(ii) and any
416+as legislative auditor general.
415417 203
416-supplemental information provided by the legislative auditor general;
418+[(11)] (12)(a) The following records in the custody or control of the legislative auditor
417419 204
418-(iii) issue a determination as to whether the entity has a valid claim of privilege,
420+general are protected records under Title 63G, Chapter 2, Government Records
419421 205
420-favoring access to the legislative auditor general of material that is not privileged;
422+Access and Management Act:
421423 206
422-and
424+(i) records and audit work papers that would disclose information relating to
423425 207
424-(iv) issue a determination as to whether the entity acted in bad faith.
426+allegations of personal misconduct, gross mismanagement, or illegal activity of a
425427 208
426-(i)(i) If the arbitrator determines that an entity does not have a valid privilege claim,
428+past or present governmental employee if the information or allegation cannot be
427429 209
428-the entity shall provide the withheld item to the legislative auditor general
430+corroborated by the legislative auditor general through other documents or
429431 210
430-immediately.
432+evidence, and the records relating to the allegation are not relied upon by the
431433 211
432-(ii) If the arbitrator determines that the entity acted in bad faith, the entity shall bare
434+legislative auditor general in preparing a final audit report;
433435 212
434-the full cost of the arbitrator.
436+(ii) records and audit workpapers that would disclose the identity of a person who,
435437 213
436-(j) The arbitrator may not disclose:
438+during the course of a legislative audit, communicated the existence of:
437439 214
438-(i) a privileged item; or
440+(A) unethical behavior;
439441 215
442+(B) waste of public funds, property, or personnel; or
443+216
444+(C) a violation or suspected violation of a United States, Utah state, or political
445+217
446+subdivision law, rule, ordinance, or regulation, if the person disclosed on the
447+218
448+condition that the identity of the person be protected;
449+219
450+(iii) before an audit is completed and the final audit report is released, records or
451+220
452+drafts circulated to a person who is not an employee or head of an entity for
453+221
454+review, response, or information;
455+222
456+(iv) records that would disclose:
457+223
458+(A) an outline;
459+224
460+(B) all or part of an audit survey, audit risk assessment plan, or audit program; or
461+225
462+(C) other procedural documents necessary to fulfill the duties of the office; and
463+226
464+(v) requests for audits, if disclosure would risk circumvention of an audit.
465+227
466+(b) The provisions of Subsection [(11)(a) ] (12)(a) do not prohibit the disclosure of
467+228
468+records or information to a government prosecutor or peace officer if those records or
469+229
470+information relate to a violation of the law by an entity or entity employee.
471+230
472+(c) A record, as defined in Section 63G-2-103, created by the office in a closed meeting
473+231
474+held in accordance with Section 52-4-205:
475+232
476+(i) is a protected record, as defined in Section 63G-2-103;
477+- 7 - 2nd Sub. (Salmon) S.B. 154 03-07 09:37
478+233
479+(ii) to the extent the record contains information:
480+234
481+(A) described in Section 63G-2-302, is a private record; or
482+235
483+(B) described in Section 63G-2-304, is a controlled record; and
484+236
485+(iii) may not be reclassified by the office.
486+237
487+(d) The provisions of this section do not limit the authority otherwise given to the
488+238
489+legislative auditor general to maintain the private, controlled, or protected record
490+239
491+status of a shared record in the legislative auditor general's possession or classify a
492+240
493+document as public, private, controlled, or protected under Title 63G, Chapter 2,
494+241
495+Government Records Access and Management Act.
496+242
497+(e) If provided to the legislative auditor general, the following are not a record, as
498+243
499+defined in Section 63G-2-103:
500+244
501+(i) a privileged item, as defined in Subsection (10)(a); and
502+245
440503 (ii) supplemental information described in Subsection (10)(g)(ii).
441-216
442-(k) Provisions of this Subsection (10) are not subject to Title 78B, Chapter 11, Utah
443-217
444-Uniform Arbitration Act.
445-218
446-[(10)] (11) To preserve the professional integrity and independence of the office:
447-219
448-(a) no legislator or public official may urge the appointment of any person to the office;
449-220
450-and
451-221
452-(b) the legislative auditor general may not be appointed to serve on any board, authority,
453-222
454-commission, or other agency of the state during the legislative auditor general's term
455-223
456-as legislative auditor general.
457-224
458-[(11)] (12)(a) The following records in the custody or control of the legislative auditor
459-225
460-general are protected records under Title 63G, Chapter 2, Government Records
461-226
462-Access and Management Act:
463-227
464-(i) records and audit work papers that would disclose information relating to
465-228
466-allegations of personal misconduct, gross mismanagement, or illegal activity of a
467-229
468-past or present governmental employee if the information or allegation cannot be
469-230
470-corroborated by the legislative auditor general through other documents or
471-231
472-evidence, and the records relating to the allegation are not relied upon by the
473-- 7 - S.B. 154 Enrolled Copy
474-232
475-legislative auditor general in preparing a final audit report;
476-233
477-(ii) records and audit workpapers that would disclose the identity of a person who,
478-234
479-during the course of a legislative audit, communicated the existence of:
480-235
481-(A) unethical behavior;
482-236
483-(B) waste of public funds, property, or personnel; or
484-237
485-(C) a violation or suspected violation of a United States, Utah state, or political
486-238
487-subdivision law, rule, ordinance, or regulation, if the person disclosed on the
488-239
489-condition that the identity of the person be protected;
490-240
491-(iii) before an audit is completed and the final audit report is released, records or
492-241
493-drafts circulated to a person who is not an employee or head of an entity for
494-242
495-review, response, or information;
496-243
497-(iv) records that would disclose:
498-244
499-(A) an outline;
500-245
501-(B) all or part of an audit survey, audit risk assessment plan, or audit program; or
502504 246
503-(C) other procedural documents necessary to fulfill the duties of the office; and
505+[(12)] (13) The legislative auditor general shall:
504506 247
505-(v) [requests for audits] a request for an audit, if disclosure would risk circumvention
507+(a) be available to the Legislature and to the Legislature's committees for consultation on
506508 248
507-of [an] the audit.
509+matters relevant to areas of the legislative auditor general's professional competence;
508510 249
509-(b) The provisions of Subsection [(11)(a) ] (12)(a) do not prohibit the disclosure of
511+(b) conduct special audits as requested by the Audit Subcommittee;
510512 250
511-records or information to a government prosecutor or peace officer if those records or
513+(c) report immediately to the Audit Subcommittee any apparent violation of penal
512514 251
513-information relate to a violation of the law by an entity or entity employee.
515+statutes disclosed by the audit of an entity and furnish to the Audit Subcommittee all
514516 252
515-(c) A record, as defined in Section 63G-2-103, created by the office in a closed meeting
517+information relative to the apparent violation;
516518 253
517-held in accordance with Section 52-4-205:
519+(d) report immediately to the Audit Subcommittee any apparent instances of
518520 254
519-(i) is a protected record, as defined in Section 63G-2-103;
521+malfeasance or nonfeasance by an entity officer or employee disclosed by the audit of
520522 255
521-(ii) to the extent the record contains information:
523+an entity; and
522524 256
523-(A) described in Section 63G-2-302, is a private record; or
525+(e) make any recommendations to the Audit Subcommittee with respect to the alteration
524526 257
525-(B) described in Section 63G-2-304, is a controlled record; and
527+or improvement of the accounting system used by an entity.
526528 258
527-(iii) may not be reclassified by the office.
529+[(13)] (14) If the legislative auditor general conducts an audit of an entity that has
528530 259
529-(d) The provisions of this section do not limit the authority otherwise given to the
531+previously been audited and finds that the entity has not implemented a recommendation
530532 260
531-legislative auditor general to maintain the private, controlled, or protected record
533+made by the legislative auditor general in a previous audit report, the legislative auditor
532534 261
533-status of a shared record in the legislative auditor general's possession or classify a
535+general shall report to the Audit Subcommittee that the entity has not implemented the
534536 262
535-document as public, private, controlled, or protected under Title 63G, Chapter 2,
537+recommendation.
536538 263
537-Government Records Access and Management Act.
539+[(14)] (15) Before each annual general session, the legislative auditor general shall:
538540 264
539-(e) If provided to the legislative auditor general, the following are not a record, as
541+(a) prepare an annual report that:
540542 265
541-defined in Section 63G-2-103:
542-- 8 - Enrolled Copy S.B. 154
543+(i) summarizes the audits, examinations, investigations, and reviews conducted by the
543544 266
544-(i) a privileged item, as defined in Subsection (10)(a); and
545+office since the last annual report; and
546+- 8 - 03-07 09:37 2nd Sub. (Salmon) S.B. 154
545547 267
546-(ii) supplemental information described in Subsection (10)(g)(ii).
548+(ii) evaluate and report the degree to which an entity that has been the subject of an
547549 268
548-[(12)] (13) The legislative auditor general shall:
550+audit has implemented the audit recommendations;
549551 269
550-(a) be available to the Legislature and to the Legislature's committees for consultation on
552+(b) include in the report any items and recommendations that the legislative auditor
551553 270
552-matters relevant to areas of the legislative auditor general's professional competence;
554+general believes the Legislature should consider in the annual general session; and
553555 271
554-(b) conduct special audits as requested by the Audit Subcommittee;
556+(c) deliver the report to the Legislature and to the appropriate committees of the
555557 272
556-(c) report immediately to the Audit Subcommittee any apparent violation of penal
558+Legislature.
557559 273
558-statutes disclosed by the audit of an entity and furnish to the Audit Subcommittee all
560+[(15)] (16)(a) If the chief officer of an entity has actual knowledge or reasonable cause to
559561 274
560-information relative to the apparent violation;
562+believe that there is misappropriation of the entity's public funds or assets, or another
561563 275
562-(d) report immediately to the Audit Subcommittee any apparent instances of
564+entity officer has actual knowledge or reasonable cause to believe that the chief
563565 276
564-malfeasance or nonfeasance by an entity officer or employee disclosed by the audit of
566+officer is misappropriating the entity's public funds or assets, the chief officer or,
565567 277
566-an entity; and
568+alternatively, the other entity officer, shall immediately notify, in writing:
567569 278
568-(e) make any recommendations to the Audit Subcommittee with respect to the alteration
570+(i) the office;
569571 279
570-or improvement of the accounting system used by an entity.
572+(ii) the attorney general, county attorney, or district attorney; and
571573 280
572-[(13)] (14) If the legislative auditor general conducts an audit of an entity that has
574+(iii)(A) for a state government organization, the chief executive officer;
573575 281
574-previously been audited and finds that the entity has not implemented a recommendation
576+(B) for a political subdivision government organization, the legislative body or
575577 282
576-made by the legislative auditor general in a previous audit report, the legislative auditor
578+governing board; or
577579 283
578-general shall report to the Audit Subcommittee that the entity has not implemented the
580+(C) for a receiving organization, the governing board or chief executive officer
579581 284
580-recommendation.
582+unless the chief executive officer is believed to be misappropriating the funds
581583 285
582-[(14)] (15) Before each annual general session, the legislative auditor general:
584+or assets, in which case the next highest officer of the receiving organization.
583585 286
584-(a) shall:
586+(b) As described in Subsection [(15)(a)] (16)(a), the entity chief officer or, if applicable,
585587 287
586-[(a)] (i) prepare an annual report that:
588+another entity officer, is subject to the protections of Title 67, Chapter 21, Utah
587589 288
588-[(i)] (A) summarizes the audits, examinations, investigations, and reviews
590+Protection of Public Employees Act.
589591 289
590-conducted by the office since the last annual report; and
592+(c) If the Office of the Legislative Auditor General receives a notification under
591593 290
592-[(ii)] (B) evaluate and report the degree to which an entity that has been the subject
594+Subsection [(15)(a)] (16)(a) or other information of misappropriation of public funds
593595 291
594-of an audit has implemented the audit recommendations;
596+or assets of an entity, the office shall inform the Audit Subcommittee.
595597 292
596-[(b)] (ii) include in the report any items and recommendations that the legislative
598+(d) The attorney general, county attorney, or district attorney shall notify, in writing, the
597599 293
598-auditor general believes the Legislature should consider in the annual general
600+Office of the Legislative Auditor General whether the attorney general, county
599601 294
600-session; and
602+attorney, or district attorney pursued criminal or civil sanctions in the matter.
601603 295
602-[(c)] (iii) deliver the report to the Legislature and to the appropriate committees of the
604+[(16)] (17)(a) An actor commits interference with a legislative audit if the actor uses
603605 296
604-Legislature[.] ; and
606+force, violence, intimidation, or engages in any other unlawful act with a purpose to
605607 297
606-(b) may use information from an audit response plan or update of an audit response plan
608+interfere with:
607609 298
608-as described in Section 36-12-15.3 when preparing the annual report described in
610+(i) a legislative audit action; or
609611 299
610-Subsection (15)(a)(i).
611-- 9 - S.B. 154 Enrolled Copy
612+(ii) the office's decisions relating to:
612613 300
613-[(15)] (16)(a) If the chief officer of an entity has actual knowledge or reasonable cause to
614+(A) the content of the office's report;
615+- 9 - 2nd Sub. (Salmon) S.B. 154 03-07 09:37
614616 301
615-believe that there is misappropriation of the entity's public funds or assets, or another
617+(B) the conclusions reached in the office's report; or
616618 302
617-entity officer has actual knowledge or reasonable cause to believe that the chief
619+(C) the manner of disclosing the results and findings of the office.
618620 303
619-officer is misappropriating the entity's public funds or assets, the chief officer or,
621+(b) A violation of Subsection [(16)(a)] (17)(a) is a class B misdemeanor.
620622 304
621-alternatively, the other entity officer, shall immediately notify, in writing:
623+[(17)] (18)(a) The office may require any current employee, or any applicant for
622624 305
623-(i) the office;
625+employment, to submit to a fingerprint-based local, regional, and criminal history
624626 306
625-(ii) the attorney general, county attorney, or district attorney; and
627+background check as an ongoing condition of employment.
626628 307
627-(iii)(A) for a state government organization, the chief executive officer;
629+(b) An employee or applicant for employment shall provide a completed fingerprint card
628630 308
629-(B) for a political subdivision government organization, the legislative body or
631+to the office upon request.
630632 309
631-governing board; or
633+(c) The office shall require that an individual required to submit to a background check
632634 310
633-(C) for a receiving organization, the governing board or chief executive officer
635+under this Subsection [(17)] (18) also provide a signed waiver on a form provided by
634636 311
635-unless the chief executive officer is believed to be misappropriating the funds
637+the office that meets the requirements of Subsection 53-10-108(4).
636638 312
637-or assets, in which case the next highest officer of the receiving organization.
639+(d) For a noncriminal justice background search and registration in accordance with
638640 313
639-(b) As described in Subsection [(15)(a)] (16)(a), the entity chief officer or, if applicable,
641+Subsection 53-10-108(13), the office shall submit to the Bureau of Criminal
640642 314
641-another entity officer, is subject to the protections of Title 67, Chapter 21, Utah
643+Identification:
642644 315
643-Protection of Public Employees Act.
645+(i) the employee's or applicant's personal identifying information and fingerprints for
644646 316
645-(c) If the Office of the Legislative Auditor General receives a notification under
647+a criminal history search of applicable local, regional, and national databases; and
646648 317
647-Subsection [(15)(a)] (16)(a) or other information of misappropriation of public funds
649+(ii) a request for all information received as a result of the local, regional, and
648650 318
649-or assets of an entity, the office shall inform the Audit Subcommittee.
651+nationwide background check.
650652 319
651-(d) The attorney general, county attorney, or district attorney shall notify, in writing, the
653+[(18)] (19) Subject to prioritization of the Legislative Audit Subcommittee, the Office of the
652654 320
653-Office of the Legislative Auditor General whether the attorney general, county
655+Legislative Auditor General shall conduct a feasibility study under Section 53G-3-301.1,
654656 321
655-attorney, or district attorney pursued criminal or civil sanctions in the matter.
657+53G-3-301.3, or 53G-3-301.4.
656658 322
657-[(16)] (17)(a) An actor commits interference with a legislative audit if the actor uses
659+Section 2. Effective Date.
658660 323
659-force, violence, intimidation, or engages in any other unlawful act with a purpose to
661+This bill takes effect on May 7, 2025.
660662 324
661-interfere with:
663+Section 3. Coordinating S.B. 154 with S.J.R. 4 if S.J.R. 4 does not pass.
662664 325
663-(i) a legislative audit action; or
665+If S.J.R. 4, Joint Resolution Amending Court Rules on Attorney Confidentiality, does
664666 326
665-(ii) the office's decisions relating to:
667+not pass, the Legislature intends that S.B. 154, Legislative Audit Amendments, not be enrolled
666668 327
667-(A) the content of the office's report;
668-328
669-(B) the conclusions reached in the office's report; or
670-329
671-(C) the manner of disclosing the results and findings of the office.
672-330
673-(b) A violation of Subsection [(16)(a)] (17)(a) is a class B misdemeanor.
674-331
675-[(17)] (18)(a) The office may require any current employee, or any applicant for
676-332
677-employment, to submit to a fingerprint-based local, regional, and criminal history
678-333
679-background check as an ongoing condition of employment.
680-- 10 - Enrolled Copy S.B. 154
681-334
682-(b) An employee or applicant for employment shall provide a completed fingerprint card
683-335
684-to the office upon request.
685-336
686-(c) The office shall require that an individual required to submit to a background check
687-337
688-under this Subsection [(17)] (18) also provide a signed waiver on a form provided by
689-338
690-the office that meets the requirements of Subsection 53-10-108(4).
691-339
692-(d) For a noncriminal justice background search and registration in accordance with
693-340
694-Subsection 53-10-108(13), the office shall submit to the Bureau of Criminal
695-341
696-Identification:
697-342
698-(i) the employee's or applicant's personal identifying information and fingerprints for
699-343
700-a criminal history search of applicable local, regional, and national databases; and
701-344
702-(ii) a request for all information received as a result of the local, regional, and
703-345
704-nationwide background check.
705-346
706-[(18)] (19) Subject to prioritization of the Legislative Audit Subcommittee, the Office of the
707-347
708-Legislative Auditor General shall conduct a feasibility study under Section 53G-3-301.1,
709-348
710-53G-3-301.3, or 53G-3-301.4.
711-349
712-Section 2. Section 36-12-15.3 is amended to read:
713-350
714-36-12-15.3 (Effective 05/07/25). Response to audit -- Chief officer -- Entity
715-351
716-reporting requirements -- Audit response plan -- Semi-annual update.
717-352
718-(1) As used in this section:
719-353
720-(a) "Alternative action" means a process, practice, or procedure that an entity
721-354
722-implements in response to an audit report that is different from the process, practice,
723-355
724-or procedure described in a recommendation.
725-356
726-(b) "Audit report" means a written report that the office issues that contains the office's
727-357
728-findings and recommendations with respect to an audit of an entity.
729-358
730-(c) "Audit response plan" means a written document that an entity issues that contains
731-359
732-the entity's response to an audit report of the entity.
733-360
734-(d) "Audit Subcommittee" means the subcommittee created in Subsection 36-12-8(1)(c).
735-361
736-(e) "Chief officer" means the individual [who holds ultimate authority over the
737-362
738-management or governance] responsible for the day-to-day direction, management,
739-363
740-and operation of an entity.
741-364
742-(f) "Entity" means:
743-365
744-(i) the same as that term is defined in Subsection 36-12-15(1); or
745-366
746-(ii) any other person that the office is authorized to audit under any other provision of
747-367
748-law.
749-- 11 - S.B. 154 Enrolled Copy
750-368
751-(g) "Legislative committee" means the committee to which the Audit Subcommittee
752-369
753-refers an audit report under Subsection 36-12-8(2)(d)(ii)(C).
754-370
755-(h) "Office" means the Office of the Legislative Auditor General.
756-371
757-(i) "Recommendation" means a process, practice, or procedure described in an audit
758-372
759-report that the office proposes an entity implement.
760-373
761-(j) "Reply" means a written document that the office issues that contains the office's
762-374
763-response to an entity's audit response plan.
764-375
765-(2)(a) In addition to any other information that the office is required to include or attach
766-376
767-to an audit report, the office shall, for each audit report the office issues:
768-377
769-[(a)] (i) subject to Subsection (2)(b), include in the audit report:
770-378
771-[(i)] (A) the identity of the chief officer; and
772-379
773-[(ii)] (B) a notice to the chief officer that the chief officer must comply with the
774-380
775-reporting requirements described in this section; and
776-381
777-[(b)] (ii) attach to the audit report:
778-382
779-[(i)] (A) the audit response plan of the entity that is the subject of the audit report;
780-383
781-and
782-384
783-[(ii)] (B) at the discretion of the legislative auditor general, a reply to the entity's
784-385
785-audit response plan.
786-386
787-(b) To comply with the reporting requirements of this section, the legislative auditor
788-387
789-general may:
790-388
791-(i) identify an individual other than the chief officer; or
792-389
793-(ii) if the entity is an entity under the direct supervision and control of the governor
794-390
795-or the lieutenant governor, identify with the governor or lieutenant governor or
796-391
797-their designee, an individual other than the chief officer to comply with the
798-392
799-reporting requirements of this section.
800-393
801-(3) The chief officer of an entity that is the subject of an audit report shall:
802-394
803-(a) prepare an audit response plan that:
804-395
805-(i) is in writing;
806-396
807-(ii) responds to the findings in the audit report; and
808-397
809-(iii) subject to Subsection (4), for each recommendation in the audit report:
810-398
811-(A) describes how the entity will implement the recommendation;
812-399
813-(B) identifies the individual employed by or otherwise affiliated with the entity
814-400
815-who is responsible for implementing the recommendation;
816-401
817-(C) establishes a timetable that identifies benchmarks for the entity to implement
818-- 12 - Enrolled Copy S.B. 154
819-402
820-the recommendation; and
821-403
822-(D) specifies an anticipated deadline by which the entity will fully implement the
823-404
824-recommendation; and
825-405
826-(b) sign and submit the audit response plan to the office before the office submits the
827-406
828-audit report to the Audit Subcommittee under Subsection 36-12-15(6)(b).
829-407
830-(4) If the chief officer described in Subsection (3) objects to implementing a
831-408
832-recommendation in an audit report, the chief officer shall:
833-409
834-(a) prepare an audit response plan in accordance with Subsections (3)(a)(i) and (ii) that:
835-410
836-(i) explains the basis for the objection; and
837-411
838-(ii)(A) identifies an alternative action that the entity will implement; or
839-412
840-(B) specifies that the entity will not implement the recommendation or an
841-413
842-alternative action; and
843-414
844-(b) comply with submission requirements described in Subsection (3)(b).
845-415
846-(5) A chief officer implementing an alternative action under Subsection (4)(a)(ii)(A) shall,
847-416
848-as it relates to the alternative action, include in the audit response plan the information
849-417
850-described in Subsection (3)(a)(iii).
851-418
852-(6) Subject to Subsection [(8)] (9), if the chief officer of an entity that is the subject of an
853-419
854-audit report implements a recommendation under Subsection (3)(a)(iii), or an alternative
855-420
856-action under Subsections (4)(a)(ii)(A) and (5), the chief officer shall, no later than 180
857-421
858-days after the day on which the Audit Subcommittee refers the audit report to a
859-422
860-legislative committee:
861-423
862-(a) prepare an update to the entity's audit response plan that:
863-424
864-(i) is in writing; and
865-425
866-(ii) describes the entity's progress towards fully implementing:
867-426
868-(A) each recommendation addressed in the entity's audit response plan under
869-427
870-Subsection (3)(a)(iii); or
871-428
872-(B) each alternative action addressed in the entity's audit response plan under
873-429
874-Subsections (4)(a)(ii)(A) and (5); and
875-430
876-(b) submit the update to the legislative committee and the legislative auditor general.
877-431
878-(7) Subject to Subsection [(8)] (9), after the chief officer described in Subsection (6)
879-432
880-complies with the submission requirements described in Subsection (6)(b), the chief
881-433
882-officer shall:
883-434
884-(a) continue to update the audit response plan in accordance with Subsection (6)(a); and
885-435
886-(b) submit the update to the legislative committee and the legislative auditor general at
887-- 13 - S.B. 154 Enrolled Copy
888-436
889-least semi-annually.
890-437
891-(8) Upon receiving an audit response plan update under Subsection (6) or (7), the legislative
892-438
893-auditor general may inform the chief officer of the following:
894-439
895-(a)(i) if the legislative auditor general agrees or disagrees with the implementation
896-440
897-status of a recommendation; and
898-441
899-(ii) if the legislative auditor general disagrees with the implementation status, the
900-442
901-basis for the disagreement and an opportunity for the chief officer to provide
902-443
903-additional information; and
904-444
905-(b) if the chief officer no longer needs to provide an update on the status of a
906-445
907-recommendation.
908-446
909-[(8)] (9) A chief officer's obligation to update an audit response plan under this section
910-447
911-terminates when the legislative auditor general reports to the Audit Subcommittee that
912-448
913-the entity which is the subject of the audit report has fully implemented:
914-449
915-(a) each recommendation addressed in the entity's audit response plan under Subsection
916-450
917-(3)(a)(iii); or
918-451
919-(b) each alternative action addressed in the entity's audit response plan under
920-452
921-Subsections (4)(a)(ii)(A) and (5) only if the alternative action has addressed the
922-453
923-recommendation identified in the audit report.
924-454
925-Section 3. Section 36-12-15.4 is enacted to read:
926-455
927-36-12-15.4 (Effective 05/07/25). Legislative auditor general -- Review of Utah
928-456
929-System of Higher Education.
930-457
931-(1) As used in this section:
932-458
933-(a) "Board" means the Utah Board of Higher Education, created in Section 53B-1-402.
934-459
935-(b) "Institution" means an institution within the Utah System of Higher Education.
936-460
937-(c) "Office" means the Office of the Legislative Auditor General created in Section
938-461
939-36-12-15.
940-462
941-(d) "System" means the Utah System of Higher Education described in Section
942-463
943-53B-1-102.
944-464
945-(2) As directed by the Legislative Audit Subcommittee, the office may:
946-465
947-(a) review and monitor the system, board, and an institution;
948-466
949-(b) identify areas where the system, board, and an institution can enhance performance,
950-467
951-effectiveness, and efficiency, or otherwise meet responsibilities set forth for the
952-468
953-system in statute; and
954-469
955-(c) establish a list of high-risk programs, operations, and functions in the system that
956-- 14 - Enrolled Copy S.B. 154
957-470
958-may require executive action, or have capacity for improved efficiency or
959-471
960-effectiveness.
961-472
962-(3) Upon request, the system, board, or an institution shall provide to the office
963-473
964-information, materials, or resources in accordance with Subsection 36-12-15(8).
965-474
966-(4) The legislative auditor general shall report findings to and regularly update the
967-475
968-Legislative Audit Subcommittee and board.
969-476
970-Section 4. Section 53F-2-526 is amended to read:
971-477
972-53F-2-526 (Effective 05/07/25). Excellence in Education and Leadership
973-478
974-Supplement.
975-479
976-(1) As used in this section:
977-480
978-(a) "Center" means the Center for the School of the Future at Utah State University
979-481
980-established in Section 53B-18-801.
981-482
982-(b) "Eligible teacher" means a teacher who is a top-performing teacher that the center
983-483
984-determines using an LEA's assessment methods, including:
985-484
986-(i) student growth or achievement measures;
987-485
988-(ii) professional evaluations;
989-486
990-(iii) parent surveys; and
991-487
992-(iv) other data-driven criteria the LEA establishes and the center verifies for validity.
993-488
994-(c) "Eligible teacher" includes an individual whom an LEA participating in the program
995-489
996-employs and who holds:
997-490
998-(i) a license the state board issues; and
999-491
1000-(ii) a position that includes a current classroom teaching assignment.
1001-492
1002-(d) "High poverty school" means the same as the term is defined in Section 53F-2-513.
1003-493
1004-(e) "LEA" means:
1005-494
1006-(i) a school district;
1007-495
1008-(ii) charter school; and
1009-496
1010-(iii) a regional education service agency.
1011-497
1012-(f) "Program" means the Excellence in Education and Leadership Supplement created in
1013-498
1014-Subsection (2).
1015-499
1016-(g) "Tier performance level" means the following levels of performance for a teacher in
1017-500
1018-comparison to all teachers the center determines in accordance with Subsection (7):
1019-501
1020-(i) the top 5% of teachers;
1021-502
1022-(ii) the next 6%-10% of teachers; and
1023-503
1024-(iii) the next 11%-25% of teachers.
1025-- 15 - S.B. 154 Enrolled Copy
1026-504
1027-(h) "Top-performing" means the top 25% of teachers in comparison to all teachers the
1028-505
1029-center determines using the methods described in Subsection (1)(b).
1030-506
1031-(2) Beginning July 1, 2024, there is created a five-year pilot program known as the
1032-507
1033-Excellence in Education and Leadership Supplement to provide a salary supplement to
1034-508
1035-an eligible teacher in recognition for outstanding instructional talent.
1036-509
1037-(3)(a) No later than December 31, 2024, an LEA shall declare the LEA's intent to
1038-510
1039-participate in the program to the center.
1040-511
1041-(b) If an LEA declares an intent to participate in the program, the LEA shall:
1042-512
1043-(i) develop a process for a school principal or the principal's designee to assess a
1044-513
1045-teacher's performance consistent with this section to determine if a teacher is an
1046-514
1047-eligible teacher, including the corresponding tier performance level; and
1048-515
1049-(ii) create an appeals process for an employee who is not nominated to be an eligible
1050-516
1051-teacher.
1052-517
1053-(4) No later than April 1, 2025, an LEA shall:
1054-518
1055-(a) attend a training that the center creates regarding the guidelines for developing a
1056-519
1057-process described in Subsection (3); and
1058-520
1059-(b) develop and submit for approval the LEA's process described in Subsection (3) to the
1060-521
1061-center.
1062-522
1063-(5)(a) The center shall review the LEA's process described in Subsection (3) and
1064-523
1065-approve the process or request that the LEA make changes to the submitted process.
1066-524
1067-(b) If the center requests changes to the LEA's submitted process, the LEA shall work
1068-525
1069-with the center to make necessary changes to receive final approval from the center.
1070-526
1071-(c) No later than June 30, 2025, the center shall provide final approval or denial of an
1072-527
1073-LEA's process.
1074-528
1075-(6) Before the start of the 2025-2026 school year, an LEA with an approved process as
1076-529
1077-described in Subsection (5) shall:
1078-530
1079-(a) ensure each school principal or the principal's designee attends a training that the
1080-531
1081-center creates regarding:
1082-532
1083-(i) how to effectively use the LEA's approved process to select and submit to the
1084-533
1085-center nominations for eligible teachers, including the corresponding tier
1086-534
1087-performance level; and
1088-535
1089-(ii) how to protect student and educator data privacy when submitting nominations
1090-536
1091-and applications, as described in Subsection (9)(b)(ii)[.] ;
1092-537
1093-(b) provide information to teachers within the LEA regarding the program and how the
1094-- 16 - Enrolled Copy S.B. 154
1095-538
1096-school's principal or principal's designee will use the approved LEA process to make
1097-539
1098-nominations of eligible teachers;
1099-540
1100-(c) ensure each school principal or the principal's designee uses the LEA's approved
1101-541
1102-process to evaluate and select which teachers within the school to nominate as
1103-542
1104-eligible teachers, including the corresponding tier performance level; and
1105-543
1106-(d) as provided in Subsection (9), submit to the center a list of the nominated eligible
1107-544
1108-teachers for the center to consider.
1109-545
1110-(7) In assessing if a nominated teacher is an eligible teacher, the center shall create an
1111-546
1112-assessment process that:
1113-547
1114-(a) uses the methods described in Subsection (1)(b);
1115-548
1116-(b) calibrates the submissions an LEA submits to determine, for all nominated teachers
1117-549
1118-statewide, which teachers are eligible teachers, including the corresponding tier
1119-550
1120-performance level;
1121-551
1122-(c) may use additional criteria as determined by the center in consultation with
1123-552
1124-participating LEAs; and
1125-553
1126-(d) establishes a scoring rubric including the scores required for a designation in each
1127-554
1128-tier performance level.
1129-555
1130-(8)(a) The center shall collaborate with LEAs to create:
1131-556
1132-(i) selection and submission guidelines for:
1133-557
1134-(A) the approval of the LEA's process as described in Subsection (5); and
1135-558
1136-(B) the list of nominated eligible teachers described in Subsection (6);
1137-559
1138-(ii) methods to determine student growth and achievement measures for subject areas
1139-560
1140-that do not have standardized assessment data;
1141-561
1142-(iii) the weightings for each element of the assessment process described in
1143-562
1144-Subsection (7); and
1145-563
1146-(iv) the trainings described in this section.
1147-564
1148-(b) The center may provide program related technical assistance to an LEA.
1149-565
1150-(9)(a) An LEA shall:
1151-566
1152-(i) apply to the center on behalf of the nominated eligible teachers within the LEA
1153-567
1154-through a process and format that the center determines; and
1155-568
1156-(ii) ensure a school principal or the principal's designee reevaluates an eligible
1157-569
1158-teacher's designation under this section every three years.
1159-570
1160-(b) The center shall:
1161-571
1162-(i) create an application process for an LEA to submit the list of nominated eligible
1163-- 17 - S.B. 154 Enrolled Copy
1164-572
1165-teachers described in Subsection (9)(a);
1166-573
1167-(ii) coordinate with the state board in the creation of the application process described
1168-574
1169-in Subsection (9)(b)(i) to ensure that any sharing of student and educator data
1170-575
1171-during the application process:
1172-576
1173-(A) complies with the Family Educational Rights and Privacy Act, 34 C.F.R. Part
1174-577
1175-99;
1176-578
1177-(B) complies with Title 53E, Chapter 9, Student Privacy and Data Protection; and
1178-579
1179-(C) uses disclosure avoidance techniques, including aggregating and otherwise
1180-580
1181-de-identifying data;
1182-581
1183-(iii) no later than October 1, 2026, determine if a nominated teacher is an eligible
1184-582
1185-teacher through the process described in Subsection (7);
1186-583
1187-(iv) verify:
1188-584
1189-(A) the validity of the LEA's process and assessment of an eligible teacher as
1190-585
1191-described in Subsections (4) and (5); and
1192-586
1193-(B) the nominations described in Subsection (7) with the LEA and school
1194-587
1195-administrators;
1196-588
1197-(v) certify a list of eligible teachers, including the total amount of funding the LEA
1198-589
1199-receives for the LEA's eligible teachers; and
1200-590
1201-(vi) provide the list described in Subsection (9)(b)(iv) to the state board.
1202-591
1203-(10)(a) Subject to legislative appropriations, the state board shall:
1204-592
1205-(i) disburse funding to an LEA in the amount the center verifies that an LEA qualifies
1206-593
1207-to receive for salary supplements under this section; and
1208-594
1209-(ii)(A) except as provided in Subsection (10)(a)(ii)(B), allocate 1% of the funds
1210-595
1211-appropriated under this section to the center; and
1212-596
1213-(B) provide no more than $500,000 to the center each fiscal year from the funds
1214-597
1215-described in Subsection (10)(a)(ii)(A).
1216-598
1217-(b) The annual salary supplement for an eligible teacher is:
1218-599
1219-(i) $10,000 for a teacher in the top 5% of teachers;
1220-600
1221-(ii) $5,000 for a teacher in the next 6%-10% of teachers; and
1222-601
1223-(iii) $2,000 for a teacher in the next 11%-25% of teachers.
1224-602
1225-(c) If the eligible teacher is employed at a high poverty school, the eligible teacher shall
1226-603
1227-receive an additional salary supplement that is equal in amount to the eligible
1228-604
1229-teacher's salary supplement described in Subsection (10)(b).
1230-605
1231-(11)(a) An LEA shall:
1232-- 18 - Enrolled Copy S.B. 154
1233-606
1234-(i) use the program funds to provide a salary supplement equal to the amount
1235-607
1236-specified in Subsection (10) for each eligible teacher in each tier performance
1237-608
1238-level; and
1239-609
1240-(ii) provide the salary supplement in an eligible teacher's regularly occurring
1241-610
1242-compensation in equal amounts through the contracted school years related to the
1243-611
1244-salary supplement award.
1245-612
1246-(b) An LEA:
1247-613
1248-(i) may use up to 4% of the money appropriated to the LEA for salary supplements to
1249-614
1250-cover administrative costs associated with implementing the program;
1251-615
1252-(ii) may use money appropriated to the LEA for the salary supplement for
1253-616
1254-employer-paid benefits; and
1255-617
1256-(iii) may not include a salary supplement received under this section:
1257-618
1258-(A) in a retirement calculation; or
1259-619
1260-(B) as part of retirement contributions.
1261-620
1262-(c) The salary supplement is not part of an eligible teacher's base pay, and is subject to
1263-621
1264-the eligible teacher's designation as an eligible teacher.
1265-622
1266-(12) Notwithstanding the provisions of this section, if the appropriation for the program is
1267-623
1268-insufficient to cover the costs associated with salary supplements, an LEA may
1269-624
1270-distribute the funds to each eligible teacher of the same tier of performance level on a
1271-625
1272-pro rata basis.
1273-626
1274-(13) The center and the state board shall collaborate regarding data sharing and other
1275-627
1276-relevant interactions to facilitate the successful administration of the program.
1277-628
1278-(14)(a) An eligible teacher that receives a salary supplement under the program has no
1279-629
1280-vested property right in the salary supplement or the designation as an eligible
1281-630
1282-teacher.
1283-631
1284-(b) An eligible teacher's salary supplement and designation under this section are void if
1285-632
1286-the school principal or principal's designee, LEA, or the center made or certified the
1287-633
1288-designation improperly.
1289-634
1290-(15)(a) Subject to prioritization of the Audit Subcommittee, unless the state board
1291-635
1292-contracts a private auditor in accordance with Subsection (15)(b), the Office of the
1293-636
1294-Legislative Auditor General established under Section 36-12-15 shall, in any fiscal
1295-637
1296-year:
1297-638
1298-(i) conduct an audit of the program including:
1299-639
1300-(A) an evaluation of the implementation of the program; and
1301-- 19 - S.B. 154 Enrolled Copy
1302-640
1303-(B) the efficacy of the program, including program outcomes; and
1304-641
1305-(ii) prepare and submit a written report for an audit described in this section in
1306-642
1307-accordance with Subsection 36-12-15[(4)(b)(ii)] (6)(b).
1308-643
1309-(b) Subject to legislative appropriations, the state board may contract with an external
1310-644
1311-auditor to perform the audit described in this Subsection (15).
1312-645
1313-(16)(a) The center shall report to the Education Interim Committee no later than the
1314-646
1315-2024 October meeting the following:
1316-647
1317-(i) the methodology and process the center develops to achieve the requirements of
1318-648
1319-Subsection (7);
1320-649
1321-(ii) relevant data and updates resulting from the collaborations described in
1322-650
1323-Subsection (8);
1324-651
1325-(iii) any recommendations for future legislation; and
1326-652
1327-(iv) data regarding salary supplement programs, including:
1328-653
1329-(A) different approaches used to reward teacher performance, including different
1330-654
1331-evaluation methods;
1332-655
1333-(B) research outlining the effectiveness and impact of different salary supplement
1334-656
1335-amounts on teacher retention; and
1336-657
1337-(C) other considerations for impactful salary supplement programs in relation to
1338-658
1339-teacher retention.
1340-659
1341-(b) Beginning November 1, 2026, the center shall provide an annual report to the
1342-660
1343-Education Interim Committee regarding:
1344-661
1345-(i) the statewide metrics used in accordance with Subsection (7);
1346-662
1347-(ii) de-identified and aggregated data showing the number of:
1348-663
1349-(A) salary supplements per school, including total number of eligible teachers in
1350-664
1351-each school;
1352-665
1353-(B) eligible teachers in high poverty schools;
1354-666
1355-(C) eligible teachers in each tier performance level;
1356-667
1357-(D) eligible teachers in subject areas that do not have standardized assessments;
1358-668
1359-and
1360-669
1361-(E) salary supplement denials per school, including the reasons for a denial;
1362-670
1363-(iii) proportion of eligible teachers in:
1364-671
1365-(A) school districts; and
1366-672
1367-(B) charter schools; and
1368-673
1369-(iv) teacher retention data for a school where an eligible teacher is employed.
1370-- 20 - Enrolled Copy S.B. 154
1371-674
1372-Section 5. Section 59-1-403 is amended to read:
1373-675
1374-59-1-403 (Effective 05/07/25). Confidentiality -- Exceptions -- Penalty --
1375-676
1376-Application to property tax.
1377-677
1378-(1) As used in this section:
1379-678
1380-(a) "Distributed tax, fee, or charge" means a tax, fee, or charge:
1381-679
1382-(i) the commission administers under:
1383-680
1384-(A) this title, other than a tax under Chapter 12, Part 2, Local Sales and Use Tax
1385-681
1386-Act;
1387-682
1388-(B) Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
1389-683
1390-(C) Title 10, Chapter 1, Part 4, Municipal Telecommunications License Tax Act;
1391-684
1392-(D) Section 19-6-805;
1393-685
1394-(E) Section 63H-1-205; or
1395-686
1396-(F) Title 69, Chapter 2, Part 4, Prepaid Wireless Telecommunications Service
1397-687
1398-Charges; and
1399-688
1400-(ii) with respect to which the commission distributes the revenue collected from the
1401-689
1402-tax, fee, or charge to a qualifying jurisdiction.
1403-690
1404-(b) "Qualifying jurisdiction" means:
1405-691
1406-(i) a county, city, or town;
1407-692
1408-(ii) the military installation development authority created in Section 63H-1-201; or
1409-693
1410-(iii) the Utah Inland Port Authority created in Section 11-58-201.
1411-694
1412-(2)(a) Any of the following may not divulge or make known in any manner any
1413-695
1414-information gained by that person from any return filed with the commission:
1415-696
1416-(i) a tax commissioner;
1417-697
1418-(ii) an agent, clerk, or other officer or employee of the commission; or
1419-698
1420-(iii) a representative, agent, clerk, or other officer or employee of any county, city, or
1421-699
1422-town.
1423-700
1424-(b) An official charged with the custody of a return filed with the commission is not
1425-701
1426-required to produce the return or evidence of anything contained in the return in any
1427-702
1428-action or proceeding in any court, except:
1429-703
1430-(i) in accordance with judicial order;
1431-704
1432-(ii) on behalf of the commission in any action or proceeding under:
1433-705
1434-(A) this title; or
1435-706
1436-(B) other law under which persons are required to file returns with the
1437-707
1438-commission;
1439-- 21 - S.B. 154 Enrolled Copy
1440-708
1441-(iii) on behalf of the commission in any action or proceeding to which the
1442-709
1443-commission is a party; or
1444-710
1445-(iv) on behalf of any party to any action or proceeding under this title if the report or
1446-711
1447-facts shown by the return are directly involved in the action or proceeding.
1448-712
1449-(c) Notwithstanding Subsection (2)(b), a court may require the production of, and may
1450-713
1451-admit in evidence, any portion of a return or of the facts shown by the return, as are
1452-714
1453-specifically pertinent to the action or proceeding.
1454-715
1455-(d) Notwithstanding any other provision of state law, a person described in Subsection
1456-716
1457-(2)(a) may not divulge or make known in any manner any information gained by that
1458-717
1459-person from any return filed with the commission to the extent that the disclosure is
1460-718
1461-prohibited under federal law.
1462-719
1463-(3) This section does not prohibit:
1464-720
1465-(a) a person or that person's duly authorized representative from receiving a copy of any
1466-721
1467-return or report filed in connection with that person's own tax;
1468-722
1469-(b) the publication of statistics as long as the statistics are classified to prevent the
1470-723
1471-identification of particular reports or returns; and
1472-724
1473-(c) the inspection by the attorney general or other legal representative of the state of the
1474-725
1475-report or return of any taxpayer:
1476-726
1477-(i) who brings action to set aside or review a tax based on the report or return;
1478-727
1479-(ii) against whom an action or proceeding is contemplated or has been instituted
1480-728
1481-under this title; or
1482-729
1483-(iii) against whom the state has an unsatisfied money judgment.
1484-730
1485-(4)(a) Notwithstanding Subsection (2) and for purposes of administration, the
1486-731
1487-commission may by rule, made in accordance with Title 63G, Chapter 3, Utah
1488-732
1489-Administrative Rulemaking Act, provide for a reciprocal exchange of information
1490-733
1491-with:
1492-734
1493-(i) the United States Internal Revenue Service; or
1494-735
1495-(ii) the revenue service of any other state.
1496-736
1497-(b) Notwithstanding Subsection (2) and for all taxes except individual income tax and
1498-737
1499-corporate franchise tax, the commission may by rule, made in accordance with Title
1500-738
1501-63G, Chapter 3, Utah Administrative Rulemaking Act, share information gathered
1502-739
1503-from returns and other written statements with the federal government, any other
1504-740
1505-state, any of the political subdivisions of another state, or any political subdivision of
1506-741
1507-this state, except as limited by Sections 59-12-209 and 59-12-210, if the political
1508-- 22 - Enrolled Copy S.B. 154
1509-742
1510-subdivision, other state, or the federal government grant substantially similar
1511-743
1512-privileges to this state.
1513-744
1514-(c) Notwithstanding Subsection (2) and for all taxes except individual income tax and
1515-745
1516-corporate franchise tax, the commission may by rule, in accordance with Title 63G,
1517-746
1518-Chapter 3, Utah Administrative Rulemaking Act, provide for the issuance of
1519-747
1520-information concerning the identity and other information of taxpayers who have
1521-748
1522-failed to file tax returns or to pay any tax due.
1523-749
1524-(d) Notwithstanding Subsection (2), the commission shall provide to the director of the
1525-750
1526-Division of Environmental Response and Remediation, as defined in Section
1527-751
1528-19-6-402, as requested by the director of the Division of Environmental Response
1529-752
1530-and Remediation, any records, returns, or other information filed with the
1531-753
1532-commission under Chapter 13, Motor and Special Fuel Tax Act, or Section
1533-754
1534-19-6-410.5 regarding the environmental assurance program participation fee.
1535-755
1536-(e) Notwithstanding Subsection (2), at the request of any person the commission shall
1537-756
1538-provide that person sales and purchase volume data reported to the commission on a
1539-757
1540-report, return, or other information filed with the commission under:
1541-758
1542-(i) Chapter 13, Part 2, Motor Fuel; or
1543-759
1544-(ii) Chapter 13, Part 4, Aviation Fuel.
1545-760
1546-(f) Notwithstanding Subsection (2), upon request from a tobacco product manufacturer,
1547-761
1548-as defined in Section 59-22-202, the commission shall report to the manufacturer:
1549-762
1550-(i) the quantity of cigarettes, as defined in Section 59-22-202, produced by the
1551-763
1552-manufacturer and reported to the commission for the previous calendar year under
1553-764
1554-Section 59-14-407; and
1555-765
1556-(ii) the quantity of cigarettes, as defined in Section 59-22-202, produced by the
1557-766
1558-manufacturer for which a tax refund was granted during the previous calendar
1559-767
1560-year under Section 59-14-401 and reported to the commission under Subsection
1561-768
1562-59-14-401(1)(a)(v).
1563-769
1564-(g) Notwithstanding Subsection (2), the commission shall notify manufacturers,
1565-770
1566-distributors, wholesalers, and retail dealers of a tobacco product manufacturer that is
1567-771
1568-prohibited from selling cigarettes to consumers within the state under Subsection
1569-772
1570-59-14-210(2).
1571-773
1572-(h) Notwithstanding Subsection (2), the commission may:
1573-774
1574-(i) provide to the Division of Consumer Protection within the Department of
1575-775
1576-Commerce and the attorney general data:
1577-- 23 - S.B. 154 Enrolled Copy
1578-776
1579-(A) reported to the commission under Section 59-14-212; or
1580-777
1581-(B) related to a violation under Section 59-14-211; and
1582-778
1583-(ii) upon request, provide to any person data reported to the commission under
1584-779
1585-Subsections 59-14-212(1)(a) through (c) and Subsection 59-14-212(1)(g).
1586-780
1587-(i) Notwithstanding Subsection (2), the commission shall, at the request of a committee
1588-781
1589-of the Legislature, the Office of the Legislative Fiscal Analyst, or the Governor's
1590-782
1591-Office of Planning and Budget, provide to the committee or office the total amount of
1592-783
1593-revenues collected by the commission under Chapter 24, Radioactive Waste Facility
1594-784
1595-Tax Act, for the time period specified by the committee or office.
1596-785
1597-(j) Notwithstanding Subsection (2), the commission shall make the directory required by
1598-786
1599-Section 59-14-603 available for public inspection.
1600-787
1601-(k) Notwithstanding Subsection (2), the commission may share information with federal,
1602-788
1603-state, or local agencies as provided in Subsection 59-14-606(3).
1604-789
1605-(l)(i) Notwithstanding Subsection (2), the commission shall provide the Office of
1606-790
1607-Recovery Services within the Department of Health and Human Services any
1608-791
1609-relevant information obtained from a return filed under Chapter 10, Individual
1610-792
1611-Income Tax Act, regarding a taxpayer who has become obligated to the Office of
1612-793
1613-Recovery Services.
1614-794
1615-(ii) The information described in Subsection (4)(l)(i) may be provided by the Office
1616-795
1617-of Recovery Services to any other state's child support collection agency involved
1618-796
1619-in enforcing that support obligation.
1620-797
1621-(m)(i) Notwithstanding Subsection (2), upon request from the state court
1622-798
1623-administrator, the commission shall provide to the state court administrator, the
1624-799
1625-name, address, telephone number, county of residence, and social security number
1626-800
1627-on resident returns filed under Chapter 10, Individual Income Tax Act.
1628-801
1629-(ii) The state court administrator may use the information described in Subsection
1630-802
1631-(4)(m)(i) only as a source list for the master jury list described in Section
1632-803
1633-78B-1-106.
1634-804
1635-(n)(i) As used in this Subsection (4)(n):
1636-805
1637-(A) "GOEO" means the Governor's Office of Economic Opportunity created in
1638-806
1639-Section 63N-1a-301.
1640-807
1641-(B) "Income tax information" means information gained by the commission that is
1642-808
1643-required to be attached to or included in a return filed with the commission
1644-809
1645-under Chapter 7, Corporate Franchise and Income Taxes, or Chapter 10,
1646-- 24 - Enrolled Copy S.B. 154
1647-810
1648-Individual Income Tax Act.
1649-811
1650-(C) "Other tax information" means information gained by the commission that is
1651-812
1652-required to be attached to or included in a return filed with the commission
1653-813
1654-except for a return filed under Chapter 7, Corporate Franchise and Income
1655-814
1656-Taxes, or Chapter 10, Individual Income Tax Act.
1657-815
1658-(D) "Tax information" means income tax information or other tax information.
1659-816
1660-(ii)(A) Notwithstanding Subsection (2) and except as provided in Subsection
1661-817
1662-(4)(n)(ii)(B) or (C), the commission shall at the request of GOEO provide to
1663-818
1664-GOEO all income tax information.
1665-819
1666-(B) For purposes of a request for income tax information made under Subsection
1667-820
1668-(4)(n)(ii)(A), GOEO may not request and the commission may not provide to
1669-821
1670-GOEO a person's address, name, social security number, or taxpayer
1671-822
1672-identification number.
1673-823
1674-(C) In providing income tax information to GOEO, the commission shall in all
1675-824
1676-instances protect the privacy of a person as required by Subsection (4)(n)(ii)(B).
1677-825
1678-(iii)(A) Notwithstanding Subsection (2) and except as provided in Subsection
1679-826
1680-(4)(n)(iii)(B), the commission shall at the request of GOEO provide to GOEO
1681-827
1682-other tax information.
1683-828
1684-(B) Before providing other tax information to GOEO, the commission shall redact
1685-829
1686-or remove any name, address, social security number, or taxpayer identification
1687-830
1688-number.
1689-831
1690-(iv) GOEO may provide tax information received from the commission in accordance
1691-832
1692-with this Subsection (4)(n) only:
1693-833
1694-(A) as a fiscal estimate, fiscal note information, or statistical information; and
1695-834
1696-(B) if the tax information is classified to prevent the identification of a particular
1697-835
1698-return.
1699-836
1700-(v)(A) A person may not request tax information from GOEO under Title 63G,
1701-837
1702-Chapter 2, Government Records Access and Management Act, or this section,
1703-838
1704-if GOEO received the tax information from the commission in accordance with
1705-839
1706-this Subsection (4)(n).
1707-840
1708-(B) GOEO may not provide to a person that requests tax information in
1709-841
1710-accordance with Subsection (4)(n)(v)(A) any tax information other than the tax
1711-842
1712-information GOEO provides in accordance with Subsection (4)(n)(iv).
1713-843
1714-(o) Notwithstanding Subsection (2), the commission may provide to the governing board
1715-- 25 - S.B. 154 Enrolled Copy
1716-844
1717-of the agreement or a taxing official of another state, the District of Columbia, the
1718-845
1719-United States, or a territory of the United States:
1720-846
1721-(i) the following relating to an agreement sales and use tax:
1722-847
1723-(A) information contained in a return filed with the commission;
1724-848
1725-(B) information contained in a report filed with the commission;
1726-849
1727-(C) a schedule related to Subsection (4)(o)(i)(A) or (B); or
1728-850
1729-(D) a document filed with the commission; or
1730-851
1731-(ii) a report of an audit or investigation made with respect to an agreement sales and
1732-852
1733-use tax.
1734-853
1735-(p) Notwithstanding Subsection (2), the commission may provide information
1736-854
1737-concerning a taxpayer's state income tax return or state income tax withholding
1738-855
1739-information to the Driver License Division if the Driver License Division:
1740-856
1741-(i) requests the information; and
1742-857
1743-(ii) provides the commission with a signed release form from the taxpayer allowing
1744-858
1745-the Driver License Division access to the information.
1746-859
1747-(q) Notwithstanding Subsection (2), the commission shall provide to the Utah
1748-860
1749-Communications Authority, or a division of the Utah Communications Authority, the
1750-861
1751-information requested by the authority under Sections 63H-7a-302, 63H-7a-402, and
1752-862
1753-63H-7a-502.
1754-863
1755-(r) Notwithstanding Subsection (2), the commission shall provide to the Utah
1756-864
1757-Educational Savings Plan information related to a resident or nonresident individual's
1758-865
1759-contribution to a Utah Educational Savings Plan account as designated on the
1760-866
1761-resident or nonresident's individual income tax return as provided under Section
1762-867
1763-59-10-1313.
1764-868
1765-(s) Notwithstanding Subsection (2), for the purpose of verifying eligibility under
1766-869
1767-Sections 26B-3-106 and 26B-3-903, the commission shall provide an eligibility
1768-870
1769-worker with the Department of Health and Human Services or its designee with the
1770-871
1771-adjusted gross income of an individual if:
1772-872
1773-(i) an eligibility worker with the Department of Health and Human Services or its
1774-873
1775-designee requests the information from the commission; and
1776-874
1777-(ii) the eligibility worker has complied with the identity verification and consent
1778-875
1779-provisions of Sections 26B-3-106 and 26B-3-903.
1780-876
1781-(t) Notwithstanding Subsection (2), the commission may provide to a county, as
1782-877
1783-determined by the commission, information declared on an individual income tax
1784-- 26 - Enrolled Copy S.B. 154
1785-878
1786-return in accordance with Section 59-10-103.1 that relates to eligibility to claim a
1787-879
1788-residential exemption authorized under Section 59-2-103.
1789-880
1790-(u) Notwithstanding Subsection (2), the commission shall provide a report regarding any
1791-881
1792-access line provider that is over 90 days delinquent in payment to the commission of
1793-882
1794-amounts the access line provider owes under Title 69, Chapter 2, Part 4, Prepaid
1795-883
1796-Wireless Telecommunications Service Charges, to the board of the Utah
1797-884
1798-Communications Authority created in Section 63H-7a-201.
1799-885
1800-(v) Notwithstanding Subsection (2), the commission shall provide the Department of
1801-886
1802-Environmental Quality a report on the amount of tax paid by a radioactive waste
1803-887
1804-facility for the previous calendar year under Section 59-24-103.5.
1805-888
1806-(w) Notwithstanding Subsection (2), the commission may, upon request, provide to the
1807-889
1808-Department of Workforce Services any information received under Chapter 10, Part
1809-890
1810-4, Withholding of Tax, that is relevant to the duties of the Department of Workforce
1811-891
1812-Services.
1813-892
1814-(x) Notwithstanding Subsection (2), the commission may provide the Public Service
1815-893
1816-Commission or the Division of Public Utilities information related to a seller that
1817-894
1818-collects and remits to the commission a charge described in Subsection 69-2-405(2),
1819-895
1820-including the seller's identity and the number of charges described in Subsection
1821-896
1822-69-2-405(2) that the seller collects.
1823-897
1824-(y)(i) Notwithstanding Subsection (2), the commission shall provide to each
1825-898
1826-qualifying jurisdiction the collection data necessary to verify the revenue collected
1827-899
1828-by the commission for a distributed tax, fee, or charge collected within the
1829-900
1830-qualifying jurisdiction.
1831-901
1832-(ii) In addition to the information provided under Subsection (4)(y)(i), the
1833-902
1834-commission shall provide a qualifying jurisdiction with copies of returns and other
1835-903
1836-information relating to a distributed tax, fee, or charge collected within the
1837-904
1838-qualifying jurisdiction.
1839-905
1840-(iii)(A) To obtain the information described in Subsection (4)(y)(ii), the chief
1841-906
1842-executive officer or the chief executive officer's designee of the qualifying
1843-907
1844-jurisdiction shall submit a written request to the commission that states the
1845-908
1846-specific information sought and how the qualifying jurisdiction intends to use
1847-909
1848-the information.
1849-910
1850-(B) The information described in Subsection (4)(y)(ii) is available only in official
1851-911
1852-matters of the qualifying jurisdiction.
1853-- 27 - S.B. 154 Enrolled Copy
1854-912
1855-(iv) Information that a qualifying jurisdiction receives in response to a request under
1856-913
1857-this subsection is:
1858-914
1859-(A) classified as a private record under Title 63G, Chapter 2, Government Records
1860-915
1861-Access and Management Act; and
1862-916
1863-(B) subject to the confidentiality requirements of this section.
1864-917
1865-(z) Notwithstanding Subsection (2), the commission shall provide the Alcoholic
1866-918
1867-Beverage Services Commission, upon request, with taxpayer status information
1868-919
1869-related to state tax obligations necessary to comply with the requirements described
1870-920
1871-in Section 32B-1-203.
1872-921
1873-(aa) Notwithstanding Subsection (2), the commission shall inform the Department of
1874-922
1875-Workforce Services, as soon as practicable, whether an individual claimed and is
1876-923
1877-entitled to claim a federal earned income tax credit for the year requested by the
1878-924
1879-Department of Workforce Services if:
1880-925
1881-(i) the Department of Workforce Services requests this information; and
1882-926
1883-(ii) the commission has received the information release described in Section
1884-927
1885-35A-9-604.
1886-928
1887-(bb)(i) As used in this Subsection (4)(bb), "unclaimed property administrator" means
1888-929
1889-the administrator or the administrator's agent, as those terms are defined in Section
1890-930
1891-67-4a-102.
1892-931
1893-(ii)(A) Notwithstanding Subsection (2), upon request from the unclaimed property
1894-932
1895-administrator and to the extent allowed under federal law, the commission shall
1896-933
1897-provide the unclaimed property administrator the name, address, telephone
1898-934
1899-number, county of residence, and social security number or federal employer
1900-935
1901-identification number on any return filed under Chapter 7, Corporate Franchise
1902-936
1903-and Income Taxes, or Chapter 10, Individual Income Tax Act.
1904-937
1905-(B) The unclaimed property administrator may use the information described in
1906-938
1907-Subsection (4)(bb)(ii)(A) only for the purpose of returning unclaimed property
1908-939
1909-to the property's owner in accordance with Title 67, Chapter 4a, Revised
1910-940
1911-Uniform Unclaimed Property Act.
1912-941
1913-(iii) The unclaimed property administrator is subject to the confidentiality provisions
1914-942
1915-of this section with respect to any information the unclaimed property
1916-943
1917-administrator receives under this Subsection (4)(bb).
1918-944
1919-(cc) Notwithstanding Subsection (2), the commission may, upon request, disclose a
1920-945
1921-taxpayer's state individual income tax information to a program manager of the Utah
1922-- 28 - Enrolled Copy S.B. 154
1923-946
1924-Fits All Scholarship Program under Section 53F-6-402 if:
1925-947
1926-(i) the taxpayer consents in writing to the disclosure;
1927-948
1928-(ii) the taxpayer's written consent includes the taxpayer's name, social security
1929-949
1930-number, and any other information the commission requests that is necessary to
1931-950
1932-verify the identity of the taxpayer; and
1933-951
1934-(iii) the program manager provides the taxpayer's written consent to the commission.
1935-952
1936-(dd) Notwithstanding Subsection (2), the commission may provide to the Division of
1937-953
1938-Finance within the Department of Government Operations any information necessary
1939-954
1940-to facilitate a payment from the commission to a taxpayer, including:
1941-955
1942-(i) the name of the taxpayer entitled to the payment or any other person legally
1943-956
1944-authorized to receive the payment;
1945-957
1946-(ii) the taxpayer identification number of the taxpayer entitled to the payment;
1947-958
1948-(iii) the payment identification number and amount of the payment;
1949-959
1950-(iv) the tax year to which the payment applies and date on which the payment is due;
1951-960
1952-(v) a mailing address to which the payment may be directed; and
1953-961
1954-(vi) information regarding an account at a depository institution to which the
1955-962
1956-payment may be directed, including the name of the depository institution, the
1957-963
1958-type of account, the account number, and the routing number for the account.
1959-964
1960-(ee) Notwithstanding Subsection (2), the commission shall provide the total amount of
1961-965
1962-revenues collected by the commission under Subsection 59-5-202(5):
1963-966
1964-(i) at the request of a committee of the Legislature, the Office of the Legislative
1965-967
1966-Fiscal Analyst, or the Governor's Office of Planning and Budget, to the committee
1967-968
1968-or office for the time period specified by the committee or office; and
1969-969
1970-(ii) to the Division of Finance for purposes of the Division of Finance administering
1971-970
1972-Subsection 59-5-202(5).
1973-971
1974-(ff) Notwithstanding Subsection (2), the commission may provide the Department of
1975-972
1976-Agriculture and Food with information from a return filed in accordance with
1977-973
1978-Chapter 31, Cannabinoid Licensing and Tax Act.
1979-974
1980-(5)(a) Each report and return shall be preserved for at least three years.
1981-975
1982-(b) After the three-year period provided in Subsection (5)(a) the commission may
1983-976
1984-destroy a report or return.
1985-977
1986-(6)(a) Any individual who violates this section is guilty of a class A misdemeanor.
1987-978
1988-(b) If the individual described in Subsection (6)(a) is an officer or employee of the state,
1989-979
1990-the individual shall be dismissed from office and be disqualified from holding public
1991-- 29 - S.B. 154 Enrolled Copy
1992-980
1993-office in this state for a period of five years thereafter.
1994-981
1995-(c) Notwithstanding Subsection (6)(a) or (b), GOEO, when requesting information in
1996-982
1997-accordance with Subsection (4)(n)(iii), or an individual who requests information in
1998-983
1999-accordance with Subsection (4)(n)(v):
2000-984
2001-(i) is not guilty of a class A misdemeanor; and
2002-985
2003-(ii) is not subject to:
2004-986
2005-(A) dismissal from office in accordance with Subsection (6)(b); or
2006-987
2007-(B) disqualification from holding public office in accordance with Subsection
2008-988
2009-(6)(b).
2010-989
2011-(d) Notwithstanding Subsection (6)(a) or (b), for a disclosure of information to the
2012-990
2013-Office of the Legislative Auditor General in accordance with Title 36, Chapter 12,
2014-991
2015-Legislative Organization, an individual described in Subsection (2):
2016-992
2017-(i) is not guilty of a class A misdemeanor; and
2018-993
2019-(ii) is not subject to:
2020-994
2021-(A) dismissal from office in accordance with Subsection (6)(b); or
2022-995
2023-(B) disqualification from holding public office in accordance with Subsection
2024-996
2025-(6)(b).
2026-997
2027-(7) Except as provided in Section 59-1-404, this part does not apply to the property tax.
2028-998
2029-Section 6. Effective Date.
2030-999
2031-This bill takes effect on May 7, 2025.
2032-- 30 -
669+and not become law.
670+- 10 -