02-27 13:24 1st Sub. (Green) S.B. 338
Ronald M. Winterton proposes the following substitute bill:
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Nonprofit Entities Amendments
2025 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Ronald M. Winterton
House Sponsor: Bridger Bolinder
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LONG TITLE
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General Description:
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This bill amends provisions relating to nonprofit entities.
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Highlighted Provisions:
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This bill:
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▸ modifies the definition of "governmental nonprofit corporation" to exclude the Utah
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Association of Special Districts;
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▸ clarifies that a private nonprofit organization that is not a public employees' association is
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not required to post employee compensation information online; and
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▸ requires a governmental nonprofit corporation to post financial information on the Utah
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Public Finance Website.
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Money Appropriated in this Bill:
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None
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Other Special Clauses:
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None
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Utah Code Sections Affected:
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AMENDS:
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11-13a-102, as last amended by Laws of Utah 2024, Chapter 438
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67-3-12, as last amended by Laws of Utah 2023, Chapters 16, 502
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Be it enacted by the Legislature of the state of Utah:
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Section 1. Section 11-13a-102 is amended to read:
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11-13a-102 . Definitions.
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As used in this chapter:
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(1) "Controlling interest" means that one or more governmental entities collectively
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represent a majority of the board's voting power as outlined in the nonprofit
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corporation's governing documents.
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(2)(a) "Governing board" means the body that governs a governmental nonprofit
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corporation.
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(b) "Governing board" includes a board of directors.
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(3) "Governmental entity" means the state, a county, a municipality, a special district, a
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special service district, a school district, a state institution of higher education, or any
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other political subdivision or administrative unit of the state.
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(4)(a) "Governmental nonprofit corporation" means:
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(i) a nonprofit corporation that is wholly owned or wholly controlled by one or more
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governmental entities, unless the nonprofit corporation receives no operating
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funding or other financial support from any governmental entity; or
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(ii) a nonprofit corporation in which one or more governmental entities exercise a
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controlling interest and:
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(A) that exercises taxing authority;
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(B) that imposes a mandatory fee for association or participation with the
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nonprofit corporation where that association or participation is mandated by
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law; or
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(C) that receives a majority of the nonprofit corporation's operating funding from
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one or more governmental entities under the nonprofit corporation's governing
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documents, except where voluntary membership fees, dues, or assessments
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compose the operating funding.
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(b) "Governmental nonprofit corporation" does not include[ ] :
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(i) a water company, as that term is defined in Section 16-4-102, unless the water
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company is wholly owned by one or more governmental entities[.] ; or
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(ii) the Utah Association of Special Districts.
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(5) "Municipality" means a city or town.
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Section 2. Section 67-3-12 is amended to read:
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67-3-12 . Utah Public Finance Website -- Establishment and administration --
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Records disclosure -- Exceptions.
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(1) As used in this section:
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(a)(i) Subject to Subsections (1)(a)(ii) and (iii), "independent entity" means the same
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as that term is defined in Section 63E-1-102.
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(ii) "Independent entity" includes an entity that is part of an independent entity
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described in Subsection (1)(a)(i), if the entity is considered a component unit of
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the independent entity under the governmental accounting standards issued by the
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Governmental Accounting Standards Board.
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(iii) "Independent entity" does not include the Utah State Retirement Office created
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in Section 49-11-201.
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(b) "Local education agency" means a school district or charter school.
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(c) "Participating local entity" means:
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(i) a county;
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(ii) a municipality;
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(iii) the State Fair Park Authority, created in Section 11-68-201;
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(iv) a special district under Title 17B, Limited Purpose Local Government Entities -
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Special Districts;
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(v) a special service district under Title 17D, Chapter 1, Special Service District Act;
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(vi) a housing authority under Title 35A, Chapter 8, Part 4, Housing Authorities;
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(vii) a public transit district under Title 17B, Chapter 2a, Part 8, Public Transit
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District Act;
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(viii) except for a taxed interlocal entity as defined in Section 11-13-602:
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(A) an interlocal entity as defined in Section 11-13-103;
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(B) a joint or cooperative undertaking as defined in Section 11-13-103; or
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(C) any project, program, or undertaking entered into by interlocal agreement in
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accordance with Title 11, Chapter 13, Interlocal Cooperation Act;
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(ix) except for a taxed interlocal entity as defined in Section 11-13-602, an entity that
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is part of an entity described in Subsections (1)(c)(i) through (viii), if the entity is
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considered a component unit of the entity described in Subsections (1)(c)(i)
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through (viii) under the governmental accounting standards issued by the
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Governmental Accounting Standards Board;[ or]
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(x) a conservation district under Title 17D, Chapter 3, Conservation District Act[.] ; or
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(xi) a governmental nonprofit corporation under Title 11, Chapter 13a, Governmental
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Nonprofit Corporations Act.
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(d)(i) "Participating state entity" means the state of Utah, including its executive,
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legislative, and judicial branches, its departments, divisions, agencies, boards,
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commissions, councils, committees, and institutions.
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(ii) "Participating state entity" includes an entity that is part of an entity described in
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Subsection (1)(d)(i), if the entity is considered a component unit of the entity
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described in Subsection (1)(d)(i) under the governmental accounting standards
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issued by the Governmental Accounting Standards Board.
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(e) "Public finance website" or "website" means the website established by the state
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auditor in accordance with this section.
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(f) "Public financial information" means each record that is required under this section
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or by rule made by the Office of the State Auditor under Subsection (9) to be made
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available on the public finance website, a participating local entity's website, or an
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independent entity's website.
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(g) "Qualifying entity" means:
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(i) an independent entity;
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(ii) a participating local entity;
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(iii) a participating state entity;
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(iv) a local education agency;
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(v) a state institution of higher education as defined in Section 53B-3-102;
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(vi) the Utah Educational Savings Plan created in Section 53B-8a-103;
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(vii) the Utah Housing Corporation created in Section 63H-8-201;
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(viii) the School and Institutional Trust Lands Administration created in Section
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53C-1-201;
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(ix) the Utah Capital Investment Corporation created in Section 63N-6-301; or
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(x) a URS-participating employer.
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(h)(i) "URS-participating employer" means an entity that:
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(A) is a participating employer, as that term is defined in Section 49-11-102; and
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(B) is not required to report public financial information under this section as a
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qualifying entity described in Subsections (1)(g)(i) through (ix).
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(ii) "URS-participating employer" does not include:
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(A) the Utah State Retirement Office created in Section 49-11-201;
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(B) an insurer that is subject to the disclosure requirements of Section 31A-4-113;[
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or]
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(C) a private nonprofit organization that is not a public employees' association; or
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[(C)] (D) a withdrawing entity.
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(i)(i) "Withdrawing entity" means:
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(A) an entity that elects to withdraw from participation in a system or plan under
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Title 49, Chapter 11, Part 6, Procedures and Records;
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(B) until the date determined under Subsection 49-11-626(2)(a), a public
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employees' association that provides the notice of intent described in
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Subsection 49-11-626(2)(b); and
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(C) beginning on the date determined under Subsection 49-11-626(2)(a), a public
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employees' association that makes an election described in Subsection
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49-11-626(3).
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(ii) "Withdrawing entity" includes a withdrawing entity, as that term is defined in
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Sections 49-11-623 and 49-11-624.
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(2) The state auditor shall establish and maintain a public finance website in accordance
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with this section.
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(3) The website shall:
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(a) permit Utah taxpayers to:
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(i) view, understand, and track the use of taxpayer dollars by making public financial
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information available on the Internet for participating state entities, independent
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entities, participating local entities, and URS-participating employers, using the
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website; and
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(ii) link to websites administered by participating local entities, independent entities,
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or URS-participating employers that do not use the website for the purpose of
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providing public financial information as required by this section and by rule
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made under Subsection (9);
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(b) allow a person that has Internet access to use the website without paying a fee;
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(c) allow the public to search public financial information on the website;
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(d) provide access to financial reports, financial audits, budgets, or other financial
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documents that are used to allocate, appropriate, spend, and account for government
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funds, as may be established by rule made in accordance with Subsection (9);
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(e) have a unique and simplified website address;
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(f) be guided by the principles described in Subsection 63A-16-202(2);
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(g) include other links, features, or functionality that will assist the public in obtaining
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and reviewing public financial information, as may be established by rule made under
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Subsection (9); and
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(h) include a link to school report cards published on the State Board of Education's
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website under Section 53E-5-211.
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(4) The state auditor shall:
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(a) establish and maintain the website, including the provision of equipment, resources,
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and personnel as necessary;
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(b) maintain an archive of all information posted to the website;
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(c) coordinate and process the receipt and posting of public financial information from
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participating state entities; and
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(d) coordinate and regulate the posting of public financial information by participating
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local entities and independent entities.
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(5) A qualifying entity shall permit the public to view the qualifying entity's public
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financial information by posting the public financial information to the public finance
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website in accordance with rules made under Subsection (9).
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(6) The content of the public financial information posted to the public finance website is
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the responsibility of the qualifying entity posting the public financial information.
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(7) A URS-participating employer shall provide employee compensation information for
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each fiscal year ending on or after June 30, 2022:
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(a) to the state auditor for posting on the Utah Public Finance Website; or
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(b)(i) through the URS-participating employer's own website; and
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(ii) via a link to the website described in Subsection (7)(b)(i), submitted to the state
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auditor for posting on the Utah Public Finance Website.
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(8)(a) A qualifying entity may not post financial information that is classified as private,
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controlled, or protected under Title 63G, Chapter 2, Government Records Access and
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Management Act, to the public finance website.
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(b) An individual who negligently discloses financial information that is classified as
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private, protected, or controlled by Title 63G, Chapter 2, Government Records
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Access and Management Act, is not criminally or civilly liable for an improper
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disclosure of the financial information if the financial information is disclosed solely
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as a result of the preparation or publication of the website.
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(9) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
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Office of the State Auditor:
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(a) shall make rules to:
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(i) establish which records a qualifying entity is required to post to the public finance
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website; and
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(ii) establish procedures for obtaining, submitting, reporting, storing, and posting
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public financial information on the public finance website; and
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(b) may make rules governing when a qualifying entity is required to disclose an
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expenditure made by a person under contract with the qualifying entity, including the
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form and content of the disclosure.
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(10) The rules made under Subsection (9) shall only require a URS-participating employer
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to provide employee compensation information for each fiscal year ending on or after
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June 30, 2022:
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(a) to the state auditor for posting on the public finance website; or
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(b)(i) through the URS-participating employer's own website; and
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(ii) via a link to the website described in Subsection (10)(b)(i), submitted to the state
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auditor for posting on the public finance website.
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Section 3. Effective Date.
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This bill takes effect on May 7, 2025.
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