Enrolled Copy S.B. 283 1 Funds Amendments 2025 GENERAL SESSION STATE OF UTAH Chief Sponsor: Scott D. Sandall House Sponsor: Walt Brooks 2 3 LONG TITLE 4 General Description: 5 This bill modifies provisions related to state accounts. 6 Highlighted Provisions: 7 This bill: 8 ▸ allows the State Tax Commission to use money in the State Tax Commission 9 Administrative Charge Account to offset general operational expenses; 10 ▸ provides that the Department of Cultural and Community Engagement disburses money 11 from the Nonprofit Capacity Fund; 12 ▸ allows the Utah Board of Higher Education to move money across specified line items; 13 ▸ provides circumstances under which an internal service fund agency may charge a rate, 14 fee, or other charge that is less than the rate, fee, or other charge the Legislature 15 approved; 16 ▸ prohibits a fee agency from charging a fee amount that is different from the amount the 17 Legislature approved, unless the amount is less than the approved amount and the fee 18 agency satisfies specified notice requirements; 19 ▸ addresses a fee agency's obligations if the fee agency charges a fee that exceeds the 20 amount the Legislature approved; 21 ▸ repeals the following unfunded accounts: 22 ● the Utah Natural Resources Legacy Fund; 23 ● the Intermountain Weatherization Training Fund; and 24 ● the Utah Children's Outdoor Recreation and Education Fund; 25 ▸ repeals the Mathematical Equations Act; and 26 ▸ makes technical and conforming changes. 27 Money Appropriated in this Bill: S.B. 283 Enrolled Copy 28 None 29 Other Special Clauses: 30 This bill provides a special effective date. 31 Utah Code Sections Affected: 32 AMENDS: 33 53-2a-1102 (Effective 05/07/25), as last amended by Laws of Utah 2023, Chapters 34, 34 471 35 59-1-306 (Effective 05/07/25), as last amended by Laws of Utah 2024, Chapter 35 36 59-5-121 (Effective 05/07/25), as enacted by Laws of Utah 2023, Chapter 537 37 59-10-1321 (Effective 05/07/25), as enacted by Laws of Utah 2023, Chapter 513 38 63J-1-206 (Effective 05/07/25), as last amended by Laws of Utah 2024, Chapter 268 39 63J-1-410 (Effective 05/07/25), as last amended by Laws of Utah 2014, Chapter 236 40 63J-1-504 (Effective 07/01/25), as last amended by Laws of Utah 2023, Chapter 428 41 63J-1-602 (Effective 05/07/25), as last amended by Laws of Utah 2024, Chapter 86 42 79-2-201 (Effective 05/07/25), as last amended by Laws of Utah 2024, Chapter 507 43 79-7-206 (Effective 05/07/25), as enacted by Laws of Utah 2022, Chapter 68 44 REPEALS: 45 23A-3-301 (Effective 05/07/25), as renumbered and amended by Laws of Utah 2023, 46 Chapter 103 47 23A-3-302 (Effective 05/07/25), as renumbered and amended by Laws of Utah 2023, 48 Chapter 103 49 23A-3-303 (Effective 05/07/25), as renumbered and amended by Laws of Utah 2023, 50 Chapter 103 51 23A-3-304 (Effective 05/07/25), as renumbered and amended by Laws of Utah 2023, 52 Chapter 103 53 23A-3-305 (Effective 05/07/25), as renumbered and amended by Laws of Utah 2023, 54 Chapter 103 55 23A-3-306 (Effective 05/07/25), as renumbered and amended by Laws of Utah 2023, 56 Chapter 103 57 35A-8-1301 (Effective 05/07/25), as last amended by Laws of Utah 2013, Chapter 400 58 63I-6-101 (Effective upon governor's approval), as enacted by Laws of Utah 2015, 59 Chapter 49 60 63I-6-102 (Effective upon governor's approval), as enacted by Laws of Utah 2015, 61 Chapter 49 - 2 - Enrolled Copy S.B. 283 62 63I-6-103 (Effective upon governor's approval), as enacted by Laws of Utah 2015, 63 Chapter 49 64 63J-3-206 (Effective upon governor's approval), as enacted by Laws of Utah 2015, 65 Chapter 49 66 79-8-304 (Effective 05/07/25), as last amended by Laws of Utah 2022, Chapter 68 67 68 Be it enacted by the Legislature of the state of Utah: 69 Section 1. Section 53-2a-1102 is amended to read: 70 53-2a-1102 (Effective 05/07/25). Search and Rescue Financial Assistance 71 Program -- Uses -- Rulemaking -- Distribution. 72 (1) As used in this section: 73 (a) "Assistance card program" means the Utah Search and Rescue Assistance Card 74 Program created within this section. 75 (b) "Card" means the Search and Rescue Assistance Card issued under this section to a 76 participant. 77 (c) "Participant" means an individual, family, or group who is registered pursuant to this 78 section as having a valid card at the time search, rescue, or both are provided. 79 (d) "Program" means the Search and Rescue Financial Assistance Program created 80 within this section. 81 (e)(i) "Reimbursable base expenses" means those reasonable expenses incidental to 82 search and rescue activities. 83 (ii) "Reimbursable base expenses" include: 84 (A) rental for fixed wing aircraft, snowmobiles, boats, and generators; 85 (B) replacement and upgrade of search and rescue equipment; 86 (C) training of search and rescue volunteers; 87 (D) costs of providing life insurance and workers' compensation benefits for 88 volunteer search and rescue team members under Section 67-20-7.5; and 89 (E) any other equipment or expenses necessary or appropriate for conducting 90 search and rescue activities. 91 (iii) "Reimbursable base expenses" do not include any salary or overtime paid to an 92 individual on a regular or permanent payroll, including permanent part-time 93 employees of any agency of the state. 94 (f) "Rescue" means search services, rescue services, or both search and rescue services. 95 (2) There is created the Search and Rescue Financial Assistance Program within the - 3 - S.B. 283 Enrolled Copy 96 division. 97 (3)(a) The financial program and the assistance card program shall be funded from the 98 following revenue sources: 99 (i) any voluntary contributions to the state received for search and rescue operations; 100 (ii) money received by the state under Subsection (11) and under Sections 23A-4-209, 101 41-22-34, and 73-18-24; 102 (iii) money deposited under Subsection 59-12-103(13); 103 (iv) contributions deposited in accordance with Section 41-1a-230.7; and 104 (v) appropriations made to the program by the Legislature. 105 (b) Money received from the revenue sources in Subsections (3)(a)(i), (ii), and (iv), and 106 90% of the money described in Subsection (3)(a)(iii), shall be deposited into the 107 General Fund as a dedicated credit to be used solely for the program. 108 (c) Ten percent of the money described in Subsection (3)(a)(iii) shall be deposited into 109 the General Fund as a dedicated credit to be used solely to promote the assistance 110 card program. 111 (d) Funding for the program is nonlapsing. 112 (4) Subject to Subsections (3)(b) and (c), the director shall use the money described in this 113 section to reimburse counties for all or a portion of each county's reimbursable base 114 expenses for search and rescue operations, subject to: 115 (a) the approval of the Search and Rescue Advisory Board as provided in Section 116 53-2a-1104; 117 (b) money available in the program; and 118 (c) rules made under Subsection (7). 119 (5) Money described in Subsection (3) may not be used to reimburse for any paid personnel 120 costs or paid man hours spent in emergency response and search and rescue related 121 activities. 122 (6) The Legislature finds that these funds are for a general and statewide public purpose. 123 (7) The division, with the approval of the Search and Rescue Advisory Board, shall make 124 rules in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, 125 and consistent with this section: 126 (a) specifying the costs that qualify as reimbursable base expenses; 127 (b) defining the procedures of counties to submit expenses and be reimbursed; 128 (c) defining a participant in the assistance card program, including: 129 (i) individuals; and - 4 - Enrolled Copy S.B. 283 130 (ii) families and organized groups who qualify as participants; 131 (d) defining the procedure for issuing a card to a participant; 132 (e) defining excluded expenses that may not be reimbursed under the program, including 133 medical expenses; 134 (f) establishing the card renewal cycle for the Utah Search and Rescue Assistance Card 135 Program; 136 (g) establishing the frequency of review of the fee schedule; 137 (h) providing for the administration of the program; and 138 (i) providing a formula to govern the distribution of available money among the counties 139 for uncompensated search and rescue expenses based on: 140 (i) the total qualifying expenses submitted; 141 (ii) the number of search and rescue incidents per county population; 142 (iii) the number of victims that reside outside the county; and 143 (iv) the number of volunteer hours spent in each county in emergency response and 144 search and rescue related activities per county population. 145 (8)(a) The division shall, in consultation with the Division of Outdoor Recreation, 146 establish the fee schedule of the Utah Search and Rescue Assistance Card Program 147 under Subsection [63J-1-504(7)] 63J-1-504(9). 148 (b) The division shall provide a discount of not less than 10% of the card fee under 149 Subsection (8)(a) to a person who has paid a fee under Section 23A-4-209, 41-22-34, 150 or 73-18-24 during the same calendar year in which the person applies to be a 151 participant in the assistance card program. 152 (9) Counties may not bill reimbursable base expenses to an individual for costs incurred for 153 the rescue of an individual, if the individual is a current participant in the Utah Search 154 and Rescue Assistance Card Program at the time of rescue, unless: 155 (a) the rescuing county finds that the participant acted recklessly in creating a situation 156 resulting in the need for the county to provide rescue services; or 157 (b) the rescuing county finds that the participant intentionally created a situation 158 resulting in the need for the county to provide rescue services. 159 (10)(a) There is created the Utah Search and Rescue Assistance Card Program. The 160 program is located within the division. 161 (b) The program may not be used to cover any expenses, such as medically related 162 expenses, that are not reimbursable base expenses related to the rescue. 163 (11)(a) To participate in the program, a person shall purchase a search and rescue - 5 - S.B. 283 Enrolled Copy 164 assistance card from the division by paying the fee as determined by the division in 165 Subsection (8). 166 (b) The money generated by the fees shall be deposited into the General Fund as a 167 dedicated credit for the Search and Rescue Financial Assistance Program created in 168 this section. 169 (c) Participation and payment of fees by a person under Sections 23A-4-209, 41-22-34, 170 and 73-18-24 do not constitute purchase of a card under this section. 171 (12) The division shall consult with the Division of Outdoor Recreation regarding: 172 (a) administration of the assistance card program; and 173 (b) outreach and marketing strategies. 174 (13) Pursuant to Subsection 31A-1-103(7), the Utah Search and Rescue Assistance Card 175 Program under this section is exempt from being considered insurance as that term is 176 defined in Section 31A-1-301. 177 Section 2. Section 59-1-306 is amended to read: 178 59-1-306 (Effective 05/07/25). Definition -- State Tax Commission 179 Administrative Charge Account -- Amount of administrative charge -- Deposit of 180 revenue into the restricted account -- Interest deposited into General Fund -- 181 Expenditure of money deposited into the restricted account. 182 (1) As used in this section, "qualifying tax, fee, or charge" means a tax, fee, or charge the 183 commission administers under: 184 (a) Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act; 185 (b) Title 10, Chapter 1, Part 4, Municipal Telecommunications License Tax Act; 186 (c) Section 19-6-714; 187 (d) Section 19-6-805; 188 (e) Chapter 12, Sales and Use Tax Act, other than a tax under Chapter 12, Part 1, Tax 189 Collection, or Chapter 12, Part 18, Additional State Sales and Use Tax Act; 190 (f) Section 59-27-105; 191 (g) Chapter 31, Cannabinoid Licensing and Tax Act; 192 (h) Section 63H-1-205; or 193 (i) Title 69, Chapter 2, Part 4, Prepaid Wireless Telecommunications Service Charges. 194 (2) There is created a restricted account within the General Fund known as the "State Tax 195 Commission Administrative Charge Account." 196 (3) Subject to the other provisions of this section, the restricted account shall consist of 197 administrative charges the commission retains and deposits in accordance with this - 6 - Enrolled Copy S.B. 283 198 section. 199 (4) For purposes of this section, the administrative charge is a percentage of revenue the 200 commission collects from each qualifying tax, fee, or charge of not to exceed the lesser 201 of: 202 (a) 1.5%; or 203 (b) an equal percentage of revenue the commission collects from each qualifying tax, 204 fee, or charge sufficient to cover the cost to the commission of administering the 205 qualifying taxes, fees, or charges. 206 (5) The commission shall deposit an administrative charge into the restricted account. 207 (6) Interest earned on the restricted account shall be deposited into the General Fund. 208 (7) The commission shall expend money appropriated by the Legislature to the commission 209 from the restricted account to administer qualifying taxes, fees, or charges or to offset 210 general operational expenses. 211 Section 3. Section 59-5-121 is amended to read: 212 59-5-121 (Effective 05/07/25). Severance tax revenue for aviation fuel incentive 213 account. 214 (1) As used in this section: 215 (a) "Base revenue year" means the fiscal year designated by the port authority under 216 Subsection (3). 217 (b) "Incentive account" means the same as that term is defined in Section 11-58-208. 218 (c) "Incremental revenue" means the amount that is calculated by subtracting the net 219 severance revenue for the base revenue year from the net severance revenue for the 220 applicable incremental revenue year. 221 (d) "Incremental revenue year" means any of the first 10 consecutive fiscal years 222 immediately following the base revenue year. 223 (e) "Net severance revenue" means the amount of severance tax revenue collected 224 during a fiscal year under Section 59-5-102, after deducting the amount of severance 225 tax revenue required to be distributed under Sections 51-9-305, 51-9-306, 59-5-116, 226 and 59-5-119. 227 (f) "Port authority" means the Utah Inland Port Authority created in Section 11-58-201. 228 (2) Subject to Subsections (3) and (4), for each of the 10 consecutive fiscal years beginning 229 the first incremental revenue year, if incremental revenue is greater than zero, the 230 Division of Finance shall deposit incremental revenue into the incentive account. 231 (3)(a) The port authority shall designate as the base revenue year the fiscal year that: - 7 - S.B. 283 Enrolled Copy 232 (i) begins on or after July 1, 2023; and 233 (ii) the port authority determines will precede the first fiscal year during which the 234 effects of the aviation fuel incentive program under Section 11-58-208 on the 235 amount of severance tax revenue under Section 59-5-102 are expected to begin to 236 occur. 237 (b) No later than September 30 of the first incremental revenue year, the port authority 238 shall provide written notification to the Division of Finance of the fiscal year that the 239 port authority designates as the base revenue year. 240 (4)(a) The Division of Finance may not deposit incremental revenue under Subsection 241 (2) that exceeds $1,000,000 per fiscal year. 242 (b) The maximum cumulative amount of incremental revenue that the Division of 243 Finance may deposit into the incentive account is $10,000,000. 244 (c) If the amount of incremental revenue for any incentive year is less than $1,000,000, 245 the Division of Finance shall deposit into the incentive account the amount of 246 incremental revenue available. 247 Section 4. Section 59-10-1321 is amended to read: 248 59-10-1321 (Effective 05/07/25). Contribution to the Nonprofit Capacity Fund. 249 (1)(a) There is created an expendable special revenue fund known as the "Nonprofit 250 Capacity Fund." 251 (b) The fund shall consist of all amounts deposited into the fund in accordance with 252 Subsection (2). 253 (2) Except as provided in Section 59-10-1304, a resident or nonresident individual who 254 files an income tax return under this chapter may designate on the resident or 255 nonresident individual's income tax return a contribution to be: 256 (a) deposited into the Nonprofit Capacity Fund; and 257 (b) expended as provided in Subsection (3). 258 [(3)(a) Each year, the commission shall disburse from the Nonprofit Capacity Fund all 259 money deposited into the fund since the last disbursement.] 260 [(b) The commission shall disburse money under Subsection (3)(a) to the Department of 261 Cultural and Community Engagement for the purpose of providing money for grants 262 to nonprofit organizations in the state.] 263 (3) The Department of Cultural and Community Engagement may use the money in the 264 Nonprofit Capacity Fund to provide grants to nonprofit organizations in the state. 265 Section 5. Section 63J-1-206 is amended to read: - 8 - Enrolled Copy S.B. 283 266 63J-1-206 (Effective 05/07/25). Appropriations governed by chapter -- 267 Restrictions on expenditures -- Transfer of funds -- Exclusion. 268 (1)(a) Except as provided in Subsections (1)(b) and (2)(e), or where expressly exempted 269 in the appropriating act: 270 (i) all money appropriated by the Legislature is appropriated upon the terms and 271 conditions set forth in this chapter; and 272 (ii) any department, agency, or institution that accepts money appropriated by the 273 Legislature does so subject to the requirements of this chapter. 274 (b) This section does not apply to: 275 (i) the Legislature and its committees; and 276 (ii) the Investigation Account of the Water Resources Construction Fund, which is 277 governed by Section 73-10-8. 278 (2)(a) Each item of appropriation is to be expended subject to any schedule of programs 279 and any restriction attached to the item of appropriation, as designated by the 280 Legislature. 281 (b) Each schedule of programs or restriction attached to an appropriation item: 282 (i) is a restriction or limitation upon the expenditure of the respective appropriation 283 made; 284 (ii) does not itself appropriate any money; and 285 (iii) is not itself an item of appropriation. 286 (c)(i) An appropriation or any surplus of any appropriation may not be diverted from 287 any department, agency, institution, division, or line item to any other department, 288 agency, institution, division, or line item. 289 (ii) If the money appropriated to an agency to pay lease payments under the program 290 established in Section 63A-5b-703 exceeds the amount required for the agency's 291 lease payments to the Division of Facilities Construction and Management, the 292 agency may: 293 (A) transfer money from the lease payments line item to other line items within 294 the agency; and 295 (B) retain and use the excess money for other purposes. 296 (d) The money appropriated subject to a schedule of programs or restriction may be used 297 only for the purposes authorized. 298 (e) In order for a department, agency, or institution to transfer money appropriated to it 299 from one program to another program, the department, agency, or institution shall - 9 - S.B. 283 Enrolled Copy 300 revise its budget execution plan as provided in Section 63J-1-209. 301 (f)(i) The procedures for transferring money between programs within a line item as 302 provided by Subsection (2)(e) do not apply to money appropriated to the State 303 Board of Education for the Minimum School Program or capital outlay programs 304 created in Title 53F, Chapter 3, State Funding -- Capital Outlay Programs. 305 (ii) The state superintendent may transfer money appropriated for the programs 306 specified in Subsection (2)(f)(i) only as provided by Section 53F-2-205. 307 (3) Notwithstanding Subsection (2)(c)(i): 308 (a) the state superintendent may transfer money appropriated for the Minimum School 309 Program between line items in accordance with Section 53F-2-205; and 310 (b) the Department of Government Operations may transfer money appropriated to 311 another department, agency, institution, or division for the purpose of paying the 312 costs of pay for performance under Section 63A-17-112. 313 (4) During fiscal years 2026 through 2029, the Utah Board of Higher Education may 314 transfer money from the Utah Board of Higher Education's line item for high-value 315 careers to the operating budgets of institutions of higher education, as defined in Section 316 53B-3-102, in amounts that are no greater than the amount the Legislature approves. 317 Section 6. Section 63J-1-410 is amended to read: 318 63J-1-410 (Effective 05/07/25). Internal service funds -- Governance and review. 319 (1) For purposes of this section: 320 (a) "Agency" means a department, division, office, bureau, or other unit of state 321 government, and includes any subdivision of an agency. 322 (b) "Do not replace vehicles" means a vehicle accounted for in the Division of Fleet 323 Operations for which charges to an agency for its use do not include amounts to 324 cover depreciation or to accumulate assets to replace the vehicle at the end of its 325 useful life. 326 (c) "Internal service fund agency" means an agency that provides goods or services to 327 other agencies of state government or to other governmental units on a capital 328 maintenance and cost reimbursement basis, and which recovers costs through 329 interagency billings. 330 (d) "Revolving loan fund" means each of the revolving loan funds defined in Section 331 63A-3-205. 332 (2) An internal service fund agency is not subject to this section with respect to its 333 administration of a revolving loan fund. - 10 - Enrolled Copy S.B. 283 334 (3)(a) An internal service fund agency may not bill another agency for services that it 335 provides for each internal service fund operated by the agency, unless the Legislature 336 has: 337 (i) reviewed and approved each internal service fund's budget request; 338 (ii) reviewed and approved each internal service fund's rates, fees, and other amounts 339 that it charges those who use its services and included those rates, fees, and 340 amounts in an appropriation act; 341 (iii) approved the number of full-time, permanent positions of each internal service 342 fund as part of the annual appropriation process; 343 (iv) review the number of full-time equivalent contract employees of each internal 344 service fund as part of the annual appropriation process; and 345 (v) appropriated to the internal service fund agency each internal service fund's 346 estimated revenue based upon the rates and fee structure that are the basis for the 347 estimate. 348 (b) If an internal service fund agency operates more than one internal service fund 349 within the internal service fund agency, the internal service fund agency shall comply 350 with the review and approval requirements under Subsection (3)(a) for each internal 351 service fund. 352 (c) If an internal service fund agency operates an internal service fund and does not get 353 the approvals required under Subsection (3)(a) or [(4)(b)] (4)(c), the internal service 354 fund agency shall rebate all rates, fees, and amounts collected to those who use the 355 services for the rates, fees, and amounts collected that were not approved under 356 Subsection (3)(a) or [(4)(b)] (4)(c). 357 (4)(a) An internal service fund agency may charge a rate, fee, or other amount that is 358 less than the rate, fee, or other amount established by the Legislature in an 359 appropriations act if the internal service fund agency first reports to the Governor's 360 Office of Planning and Budget and the Office of the Legislative Fiscal Analyst the 361 internal service fund agency's justification for reducing the rate, fee, or other amount. 362 (b) Except as provided in Subsection [(4)(b)] (4)(c), an internal service fund agency may 363 not charge rates, fees, and other amounts that exceed the rates, fees, and amounts 364 established by the Legislature in the appropriations act. 365 [(b)] (c)(i) An internal service fund agency that begins a new service or introduces a 366 new product between annual general sessions of the Legislature may, for that 367 service or product: - 11 - S.B. 283 Enrolled Copy 368 (A) establish and charge an interim rate or amount; 369 (B) acquire contract employees, if necessary; or 370 (C) do a combination of Subsections [(4)(b)(i)(A) and (B)] (4)(c)(i)(A) and (B). 371 (ii) The internal service fund agency shall: 372 (A) submit the interim rate or amount under Subsection [(4)(b)(i)] (4)(c)(i) to the 373 Legislature for approval at the next annual general session; and 374 (B) report any change in the number of contract employees under Subsection [ 375 (4)(b)(i)] (4)(c)(i) to the appropriate legislative appropriations subcommittee for 376 review. 377 (5) The internal service fund agency budget request shall separately identify the capital 378 needs and the related capital budget. 379 (6) In the fiscal year that the accounting change referred to in Subsection 51-5-6(2) is 380 implemented by the Division of Finance, the Division of Finance shall transfer equity 381 created by that accounting change to any internal service fund agency up to the amount 382 needed to eliminate any long-term debt and deficit working capital in the fund. 383 (7) No new internal service fund agency may be established unless reviewed and approved 384 by the Legislature. 385 (8)(a) Except as provided in Subsection (8)(f), an internal service fund agency may not 386 acquire capital assets unless legislative approval for acquisition of the assets has been 387 included in an appropriations act for the internal service fund agency. 388 (b) An internal service fund agency may not acquire capital assets after the transfer 389 mandated by Subsection (6) has occurred unless the internal service fund agency has 390 adequate working capital. 391 (c) The internal service fund agency shall provide working capital from the following 392 sources in the following order: 393 (i) first, from operating revenues to the extent allowed by state rules and federal 394 regulations; 395 (ii) second, from long-term debt, subject to the restrictions of this section; and 396 (iii) last, from an appropriation. 397 (d)(i) To eliminate negative working capital, an internal service fund agency may 398 incur long-term debt from the General Fund or Special Revenue Funds to acquire 399 capital assets. 400 (ii) The internal service fund agency shall repay all long-term debt borrowed from the 401 General Fund or Special Revenue Funds by making regular payments over the - 12 - Enrolled Copy S.B. 283 402 useful life of the asset according to the asset's depreciation schedule. 403 (e)(i) The Division of Finance may not allow an internal service fund agency's 404 borrowing to exceed 90% of the net book value of the agency's capital assets as of 405 the end of the fiscal year. 406 (ii) If an internal service fund agency wishes to purchase authorized assets or enter 407 into equipment leases that would increase its borrowing beyond 90% of the net 408 book value of the agency's capital assets, the agency may purchase those assets 409 only with money appropriated from another fund, such as the General Fund or a 410 special revenue fund. 411 (f)(i) Except as provided in Subsection (8)(f)(ii), capital assets acquired through 412 agency appropriation may not be transferred to any internal service fund agency 413 without legislative approval. 414 (ii) Vehicles acquired by agencies from appropriated funds or money appropriated to 415 agencies to be used for vehicle purchases may be transferred to the Division of 416 Fleet Operations and, when transferred, become part of the Fleet Operations 417 Internal Service Fund. 418 (iii) Vehicles acquired with funding from sources other than state appropriations or 419 acquired through the federal surplus property donation program may be 420 transferred to the Division of Fleet Operations and, when transferred, become part 421 of the Fleet Operations Internal Service Fund. 422 (iv) Unless otherwise approved by the Legislature, vehicles acquired under 423 Subsection (8)(f)(iii) shall be accounted for as "do not replace" vehicles. 424 (9) The Division of Finance shall adopt policies and procedures related to the accounting 425 for assets, liabilities, equity, revenues, expenditures, and transfers of internal service 426 funds agencies. 427 Section 7. Section 63J-1-504 is amended to read: 428 63J-1-504 (Effective 07/01/25). Fees -- Adoption, procedure, and approval -- 429 Establishing and assessing fees without legislative approval -- Report summarizing fees. 430 (1) As used in this section: 431 (a)(i) "Agency" means each department, commission, board, council, agency, 432 institution, officer, corporation, fund, division, office, committee, authority, 433 laboratory, library, unit, bureau, panel, or other administrative unit of the state. 434 (ii) "Agency" does not include: 435 (A) the Legislature or a committee or staff office of the Legislature; or - 13 - S.B. 283 Enrolled Copy 436 (B) the Judiciary, as that term is defined in Section 78A-2-310. 437 (b) "Agency's cost" means all of a fee agency's direct and indirect costs and expenses for 438 providing the goods or service for which the fee agency charges a fee or for 439 regulating the industry in which the persons paying the fee operate, including: 440 (i) salaries, benefits, contracted labor costs, travel expenses, training expenses, 441 equipment and material costs, depreciation expense, utility costs, and other 442 overhead costs; and 443 (ii) costs and expenses for administering the fee. 444 (c)(i) "Fee agency" means an agency that is authorized to establish and charge a 445 service fee or a regulatory fee. 446 (ii) "Fee agency" does not include an internal service fund agency as defined in 447 Section 63J-1-410. 448 (d) "Fee schedule" means the complete list of service fees and regulatory fees charged 449 by a fee agency and the amount of those fees. 450 (e) "Regulatory fee" means a fee that a fee agency charges to cover the agency's cost of 451 regulating the industry in which the persons paying the fee operate. 452 (f) "Service fee" means a fee that a fee agency charges to cover the agency's cost of 453 providing the goods or service for which the fee is charged. 454 (2)(a) A fee agency that charges or intends to charge a service fee or regulatory fee shall 455 adopt a fee schedule. 456 (b) A service fee or regulatory fee that a fee agency charges shall: 457 (i) be reasonable and fair; 458 (ii) reflect and be based on the agency's cost for the fee; and 459 (iii) be established according to a cost formula determined by the executive director 460 of the Governor's Office of Planning and Budget and the director of the Division 461 of Finance in conjunction with the fee agency seeking to establish the fee. 462 (3) Except as provided in Subsection [(7)] (9), a fee agency may not: 463 (a) set fees by rule; or 464 (b) create, change, or collect any fee unless the fee has been established according to the 465 procedures and requirements of this section. 466 (4) Each fee agency that is proposing a new fee or proposing to change a fee shall: 467 (a) present each proposed fee at a public hearing, subject to the requirements of Title 52, 468 Chapter 4, Open and Public Meetings Act; 469 (b) increase, decrease, or affirm each proposed fee based on the results of the public - 14 - Enrolled Copy S.B. 283 470 hearing; 471 (c) except as provided in Subsection [(8)] (10), submit the fee schedule to the Legislature 472 as part of the agency's annual appropriations request; and 473 (d) modify the fee schedule as necessary to implement the Legislature's actions. 474 [(5)(a) No later than November 30, 2022, the Governor's Office of Planning and Budget 475 and the Division of Finance shall submit a report to the Infrastructure and General 476 Government Appropriations Subcommittee of the Legislature.] 477 [(b) A report under Subsection (5)(a) shall:] 478 [(i) provide a summary of:] 479 [(A) the types of service fees and regulatory fees included in the fee schedules of 480 all fee agencies;] 481 [(B) the methods used by fee agencies to determine the amount of fees;] 482 [(C) each estimated agency's cost related to each fee;] 483 [(D) whether a fee is intended to cover the agency's cost related to the fee;] 484 [(E) whether the fee agency intends to subsidize the fee to cover the agency's cost 485 related to the fee and, if so, the fee agency's justification for the subsidy; and] 486 [(F) whether the fee agency set the fee at an amount that exceeds the agency's cost 487 related to the fee and, if so, the fee agency's justification for the excess fee; and] 488 [(ii) include any recommendations for improving the process described in this section.] 489 [(6)] (5)(a) A fee agency shall submit the fee agency's fee schedule to the Legislature for 490 the Legislature's approval on an annual basis. 491 (b) The Legislature may approve, increase or decrease and approve, or reject any fee 492 submitted to it by a fee agency in an appropriations act. 493 (6) Except as provided in Subsection (8), a fee agency may not charge a fee in an amount 494 that is different from the amount the Legislature approved under Subsection (5). 495 (7) If a fee agency charges a fee in an amount that exceeds the amount the Legislature 496 approved: 497 (a) the fee agency shall make all efforts to refund to each payor the amount the payor 498 paid that exceeds the amount the Legislature approved; and 499 (b) the Division of Finance shall transfer into the General Fund any excess collections 500 not refunded to payors in accordance with Subsection (7)(a). 501 (8) A fee agency may charge a fee that is less than the fee established by the Legislature in 502 an appropriations act if the fee agency first reports to the Governor's Office of Planning 503 and Budget and the Office of the Legislative Fiscal Analyst the fee agency's justification - 15 - S.B. 283 Enrolled Copy 504 for reducing the fee. 505 [(7)] (9) After conducting the public hearing required by this section, a fee agency may 506 establish and assess fees without first obtaining legislative approval if: 507 (a)(i) the Legislature creates a new program that is to be funded by fees to be set by 508 the Legislature; 509 (ii) the new program's effective date is before the Legislature's next annual general 510 session; and 511 (iii) the fee agency submits the fee schedule for the new program to the Legislature 512 for its approval at a special session, if allowed in the governor's call, or at the next 513 annual general session of the Legislature, whichever is sooner; or 514 (b)(i) the fee agency proposes to increase or decrease an existing fee for the purpose 515 of adding or removing a transactional fee that is charged or assessed by a 516 non-governmental third party but is included as part of the fee charged by the fee 517 agency; 518 (ii) the amount of the increase or decrease in the fee is equal to the amount of the 519 transactional fee charged or assessed by the non-governmental third party; and 520 (iii) the increased or decreased fee is submitted to the Legislature for the Legislature's 521 approval at a special session, if allowed in the governor's call, or at the next 522 annual session of the Legislature, whichever is sooner. 523 [(8)] (10)(a) A fee agency that intends to change any fee shall submit to the governor, as 524 part of the agency's annual appropriation request a list that identifies: 525 (i) the title or purpose of the fee; 526 (ii) the present amount of the fee; 527 (iii) the proposed new amount of the fee; 528 (iv) the percent that the fee will have increased if the Legislature approves the higher 529 fee; 530 (v) the estimated total annual revenue and total estimated annual revenue change that 531 will result from the changed fee; 532 (vi) the account or fund into which the fee will be deposited; 533 (vii) the reason for the change in the fee; 534 (viii) the estimated number of persons to be charged the fee; 535 (ix) the estimated agency's cost related to the fee; 536 (x) whether the fee is a service fee or a regulatory fee; 537 (xi) whether the fee is intended to cover the agency's cost related to the fee; - 16 - Enrolled Copy S.B. 283 538 (xii) whether the fee agency intends to subsidize the fee to cover the agency's cost 539 related to the fee and, if so, the fee agency's justification for the subsidy; and 540 (xiii) whether the fee agency set the fee at an amount that exceeds the agency's cost 541 related to the fee and, if so, the fee agency's justification for the excess fee. 542 (b)(i) The governor may review and approve, modify and approve, or reject the fee 543 increases. 544 (ii) The governor shall transmit the list required by Subsection [(8)(a)] (10)(a), with 545 any modifications, to the legislative fiscal analyst with the governor's budget 546 recommendations. 547 (c) Bills approving any fee change shall be filed before the beginning of the Legislature's 548 annual general session, if possible. 549 [(9)] (11)(a) Except as provided in Subsection [(9)(b)] (11)(b), the School and 550 Institutional Trust Lands Administration, established in Section 53C-1-201, is exempt 551 from the requirements of this section. 552 (b) The following fees of the School and Institutional Trust Lands Administration are 553 subject to the requirements of this section: application, assignment, amendment, 554 affidavit for lost documents, name change, reinstatement, grazing nonuse, extension 555 of time, partial conveyance, patent reissue, collateral assignment, electronic payment, 556 and processing. 557 Section 8. Section 63J-1-602 is amended to read: 558 63J-1-602 (Effective 05/07/25). Nonlapsing appropriations. 559 (1) [The appropriations from a fund or account and appropriations to a program that are 560 listed in Section 63J-1-602.1 or 63J-1-602.2 are nonlapsing] Each appropriation listed in 561 Section 63J-1-602.1 or 63J-1-602.2 is nonlapsing. 562 (2) No appropriation from a fund or account or appropriation to a program may be treated 563 as nonlapsing unless: 564 (a) it is listed in Section 63J-1-602.1 or 63J-1-602.2; 565 (b) it is designated in a condition of appropriation in the appropriations bill; or 566 (c) nonlapsing authority is granted under Section 63J-1-603. 567 (3) Each legislative appropriations subcommittee shall review the accounts and funds that 568 have been granted nonlapsing authority under the provisions of this section or Section 569 63J-1-603. 570 (4) Except as provided in Subsection (5), on or before October 1 of each calendar year, an 571 agency shall submit to the legislative appropriations subcommittee with jurisdiction over - 17 - S.B. 283 Enrolled Copy 572 the agency's budget a report that describes the agency's plan to expend any nonlapsing 573 appropriations, including: 574 (a) if applicable, the results of the prior year's planned use of the agency's nonlapsing 575 appropriations; and 576 (b) if the agency plans to save all or a portion of the agency's nonlapsing appropriations 577 over multiple years to pay for an anticipated expense: 578 (i) the estimated cost of the expense; and 579 (ii) the number of years until the agency will accumulate the amount required to pay 580 for the expense. 581 (5) The State Board of Education shall submit the report described in Subsections (4)(a) 582 and (b) on or before October 10 of each calendar year. 583 Section 9. Section 79-2-201 is amended to read: 584 79-2-201 (Effective 05/07/25). Department of Natural Resources created. 585 (1) There is created the Department of Natural Resources. 586 (2) The department comprises the following: 587 (a) Board of Water Resources, created in Section 73-10-1.5; 588 (b) Board of Oil, Gas, and Mining, created in Section 40-6-4; 589 (c) Office of Energy Development, created in Section 79-6-401; 590 (d) Wildlife Board, created in Section 23A-2-301; 591 (e) Board of the Utah Geological Survey, created in Section 79-3-301; 592 (f) Water Development Coordinating Council, created in Section 73-10c-3; 593 (g) Division of Water Rights, created in Section 73-2-1.1; 594 (h) Division of Water Resources, created in Section 73-10-18; 595 (i) Division of Forestry, Fire, and State Lands, created in Section 65A-1-4; 596 (j) Division of Oil, Gas, and Mining, created in Section 40-6-15; 597 (k) Division of State Parks, created in Section 79-4-201; 598 (l) Division of Outdoor Recreation, created in Section 79-7-201; 599 (m) Division of Wildlife Resources, created in Section 23A-2-201; 600 (n) Utah Geological Survey, created in Section 79-3-201; 601 (o) Utah Outdoor Recreation Infrastructure Advisory Committee, created in Section 602 79-7-206; 603 (p)(i) an advisory council that includes in the advisory council's duties advising on 604 state boating policy, authorized by Section 73-18-3.5; or 605 (ii) an advisory council that includes in the advisory council's duties advising on - 18 - Enrolled Copy S.B. 283 606 off-highway vehicle use, authorized by Section 41-22-10; 607 (q) Wildlife Board Nominating Committee, created in Section 23A-2-302; 608 (r) Wildlife Regional Advisory Councils, created in Section 23A-2-303; 609 (s) Utah Watersheds Council, created in Section 73-10g-304; and 610 [(t) Utah Natural Resources Legacy Fund Board, created in Section 23A-3-305; and] 611 [(u)] (t) Public Lands Policy Coordinating Office created in Section 63L-11-201. 612 (3) The department shall provide office space, furnishings, and supplies to the Great Salt 613 Lake commissioner appointed under Section 73-32-201, the Office of the Great Salt 614 Lake Commissioner created in Section 73-32-301, and support staff for the Office of the 615 Great Salt Lake Commissioner. 616 Section 10. Section 79-7-206 is amended to read: 617 79-7-206 (Effective 05/07/25). Utah Outdoor Recreation Infrastructure Advisory 618 Committee. 619 (1) As used in this section, "committee" means the Utah Outdoor Recreation Infrastructure 620 Advisory Committee created in this section. 621 (2)(a) There is created within the division the "Utah Outdoor Recreation Infrastructure 622 Advisory Committee" consisting of the following 17 members: 623 (i) the director of the division, who shall act as chair of the committee; 624 (ii) the director of the Division of State Parks, or the director of the Division of State 625 Park's designee; and 626 (iii) the following appointed by the executive director: 627 (A) one nonvoting representative of a federal land agency; 628 (B) one nonvoting representative of National Park Service's River, Trails, and 629 Conservation Assistance Program; 630 (C) one representative of municipal government, recommended by the Utah 631 League of Cities and Towns; 632 (D) one representative of county government, recommended by the Utah 633 Association of Counties; 634 (E) two representatives of the outdoor industry; 635 (F) two representatives of tourism, with one focused in the hotel or lodging sector; 636 (G) one representative of the healthcare industry; 637 (H) one representative of multi-ability groups or programs; 638 (I) one representative of outdoor recreation education programming; 639 (J) one representative of nonmotorized recreation interests; - 19 - S.B. 283 Enrolled Copy 640 (K) one representative of youth conservation or service corps organization; and 641 (L) two representatives of motorized recreation interests. 642 (b) At least two of the members of the committee appointed under Subsection (2)(a)(iii) 643 shall represent rural interests. 644 (3)(a) Except as required by Subsection (3)(b), as terms of committee members 645 appointed under Subsection (2)(a)(iii) expire, the division shall appoint each new 646 member or reappointed member to a four-year term. 647 (b) Notwithstanding the requirements of Subsection (3)(a), the division shall, at the time 648 of appointment or reappointment, adjust the length of terms to ensure that the terms 649 of committee members appointed under Subsection (2)(a)(iii) are staggered so that 650 approximately half of the committee is appointed every two years. 651 (c) The executive director may remove an appointed member of the advisory committee 652 at any time, with or without cause. 653 (d) When a vacancy occurs in the membership for any reason, the executive director 654 shall appoint the replacement for the unexpired term in the same manner as the 655 original appointment. 656 (4) The majority of voting members of the committee constitutes a quorum and an action of 657 the majority of voting members present when a quorum is present is action by the 658 committee. 659 (5) The division shall provide administrative staff support for the committee. 660 (6) A member may not receive compensation or benefits for the member's service, but a 661 member appointed under Subsection (2)(a)(iii) may receive per diem and travel 662 expenses in accordance with: 663 (a) Section 63A-3-106; 664 (b) Section 63A-3-107; and 665 (c) rules made by the Division of Finance pursuant to Sections 63A-3-106 and 666 63A-3-107. 667 (7) The committee shall advise and make recommendations to the division regarding: 668 (a) nonmotorized recreational trails under Chapter 5, Recreational Trails; 669 (b) grants issued under Chapter 8, Part 2, Recreation Restoration Infrastructure Grant 670 Program; 671 [(c) the administration of the fund created in Section 79-8-304;] 672 [(d)] (c) grants issued under Chapter 8, Part 3, Utah Children's Outdoor Recreation and 673 Education Grant Program; and - 20 - Enrolled Copy S.B. 283 674 [(e)] (d) grants issued under Chapter 8, Part 4, Outdoor Recreational Infrastructure Grant 675 Program. 676 Section 11. Repealer. 677 This bill repeals: 678 Section 23A-3-301, (Effective 05/07/25)Definitions. 679 Section 23A-3-302, (Effective 05/07/25)Application to mineral estates. 680 Section 23A-3-303, (Effective 05/07/25)Reporting. 681 Section 23A-3-304, (Effective 05/07/25)Utah Natural Resources Legacy Fund. 682 Section 23A-3-305, (Effective 05/07/25)Utah Natural Resources Legacy Fund Board. 683 Section 23A-3-306, (Effective 05/07/25)Uses of legacy fund. 684 Section 35A-8-1301, (Effective 05/07/25)Creation and administration. 685 Section 63I-6-101, (Effective upon governor's approval)Title. 686 Section 63I-6-102, (Effective upon governor's approval)Definitions. 687 Section 63I-6-103, (Effective upon governor's approval)Converting a formula into a 688 mathematical equation. 689 Section 63J-3-206, (Effective upon governor's approval)Appropriations limit formula -- 690 Mathematical equation. 691 Section 79-8-304, (Effective 05/07/25)Utah Children's Outdoor Recreation and 692 Education Fund -- Uses -- Costs. 693 Section 12. Effective Date. 694 (1) Except as provided in Subsections (2) and (3), this bill takes effect May 7, 2025. 695 (2)(a) The actions affecting sections described in Subsection (2)(b) take effect: 696 (i) except as provided in Subsection (2)(a)(ii), May 7, 2025; or 697 (ii) if approved by two-thirds of all members elected to each house: 698 (A) upon approval by the governor; 699 (B) without the governor's signature, the day following the constitutional time 700 limit of Utah Constitution, Article VII, Section 8; or 701 (C) in the case of a veto, the date of veto override. 702 (b) Subsection (2)(a) applies to the actions affecting the following sections: 703 (i) Section 63I-6-101Effective upon governor's approval; 704 (ii) Section 63J-3-206Effective upon governor's approval; 705 (iii) Section 63I-6-103Effective upon governor's approval; and 706 (iv) Section 63I-6-102Effective upon governor's approval. 707 (3) The actions affecting Section 63J-1-504 Effective 07/01/25 take effect on July 1, 2025. - 21 -