2006 Utah Code - 63-38-3.2 — Fees -- Adoption, procedure, and approval -- Establishing and assessing fees without legislative approval.

     63-38-3.2.   Fees -- Adoption, procedure, and approval -- Establishing and assessing fees without legislative approval.
     (1) As used in this section:
     (a) (i) "Agency" means each department, commission, board, council, agency, institution, officer, corporation, fund, division, office, committee, authority, laboratory, library, unit, bureau, panel, or other administrative unit of the state.
     (ii) "Agency" does not mean the Legislature or its committees.
     (b) "Fee agency" means any agency that is authorized to establish regulatory fees.
     (c) "Fee schedule" means the complete list of regulatory fees charged by a fee agency and the amount of those fees.
     (d) "Regulatory fees" means fees established for licensure, registration, or certification.
     (2) Each fee agency shall:
     (a) adopt a schedule of fees assessed for services provided by the fee agency that are:
     (i) reasonable, fair, and reflect the cost of services provided; and
     (ii) established according to a cost formula determined by the director of the Governor's Office of Planning and Budget and the director of the Division of Finance in conjunction with the agency seeking to establish the regulatory fee;
     (b) conduct a public hearing on any proposed regulatory fee and increase or decrease the proposed regulatory fee based upon the results of the public hearing;
     (c) except as provided in Subsection (6), submit the fee schedule to the Legislature as part of the agency's annual appropriations request;
     (d) where necessary, modify the fee schedule to implement the Legislature's actions; and
     (e) deposit all regulatory fees collected under the fee schedule into the General Fund.
     (3) A fee agency may not:
     (a) set regulatory fees by rule; or
     (b) charge or collect any regulatory fee without approval by the Legislature unless the fee agency has complied with the procedures and requirements of Subsection (5).
     (4) The Legislature may approve, increase or decrease and approve, or reject any regulatory fee submitted to it by a fee agency.
     (5) (a) After the public hearing required by this section, a fee agency may establish and assess regulatory fees without legislative approval if:
     (i) the Legislature creates a new program that is to be funded by regulatory fees to be set by the Legislature; and
     (ii) the new program's effective date is before the Legislature's next annual general session; or
     (iii) the Division of Occupational and Professional licensing makes a special assessment against qualified beneficiaries under the Residence Lien Restriction and Lien Recovery Fund Act as provided in Subsection 38-11-206(1).
     (b) Each fee agency shall submit its fee schedule or special assessment amount to the Legislature for its approval at a special session, if allowed in the governor's call, or at the next annual general session of the Legislature, whichever is sooner.
     (c) Unless the fee schedule is approved by the Legislature, the fee agency may not collect a regulatory fee set according to this subsection after the adjournment of the annual general session following the session that established the new program.
     (6) (a) Each fee agency that wishes to increase any regulatory fee by 5% or more shall

obtain legislative approval for the fee increase as provided in this subsection before assessing the new regulatory fee.
     (b) Each fee agency that wishes to increase any regulatory fee by 5% or more shall submit to the governor as part of the agency's annual appropriation request a list that identifies:
     (i) the title or purpose of the regulatory fee;
     (ii) the present amount of the regulatory fee;
     (iii) the proposed new amount of the regulatory fee;
     (iv) the percent that the regulatory fee will have increased if the Legislature approves the higher fee; and
     (v) the reason for the increase in the regulatory fee.
     (c) (i) The governor may review and approve, modify and approve, or reject the regulatory fee increases.
     (ii) The governor shall transmit the list required by Subsection (6)(b), with any modifications, to the Legislative Fiscal Analyst with the governor's budget recommendations.
     (d) Bills approving any regulatory fee increases of 5% or more shall be filed before the beginning of the Legislature's annual general session, if possible.

Amended by Chapter 16, 2003 General Session