2006 Utah Code - 63-38-9 — Revenue types -- Disposition of funds collected or credited by a state agency.

     63-38-9.   Revenue types -- Disposition of funds collected or credited by a state agency.
     (1) (a) The revenues enumerated in this section are established as major revenue types.
     (b) The Division of Finance shall:
     (i) account for revenues in accordance with generally accepted accounting principles; and
     (ii) use the major revenue types in internal accounting.
     (c) Each agency shall:
     (i) use the major revenue types enumerated in this section to account for revenues;
     (ii) deposit revenues and other public funds received by them by following the procedures and requirements of Title 51, Chapter 7, State Money Management Act; and
     (iii) expend revenues and public funds as required by this chapter.
     (2) The major revenue types are:
     (a) free revenue;
     (b) restricted revenue;
     (c) dedicated credits; and
     (d) fixed collections.
     (3) (a) Free revenue includes:
     (i) collections that are required by law to be deposited in the General Fund, the Uniform School Fund, or the Transportation Fund;
     (ii) collections that are not otherwise designated by law;
     (iii) collections that are not externally restricted; and
     (iv) collections that are not included in an approved work program.
     (b) Each agency shall deposit its free revenues into the appropriate fund.
     (c) An agency may expend free revenues up to the amount specifically appropriated by the Legislature.
     (d) Any free revenue funds appropriated by the Legislature to an agency that remain unexpended at the end of the fiscal year lapse to the source fund unless the Legislature provides by law that those funds are nonlapsing.
     (4) (a) Restricted revenues are collections deposited by law into a separate fund or subfund that are designated for a specific program or purpose.
     (b) Each agency shall deposit its restricted revenues into a restricted fund.
     (c) The Legislature may appropriate restricted revenues from a restricted fund for the specific purpose or program designated by law.
     (d) If the fund equity of a restricted fund is insufficient to provide the funds appropriated from it by the Legislature, the Division of Finance may reduce the appropriation to a level that ensures that the fund equity is not less than zero.
     (e) Any restricted revenue funds appropriated by the Legislature to an agency that remain unexpended at the end of the fiscal year lapse to the restricted fund unless the Legislature provides by law that those funds, or the program or line item financed by those funds, are nonlapsing.
     (5) (a) Dedicated credits and federal revenues are collections by an agency that are deposited directly into an account for expenditure on a separate line item and program.
     (b) An agency may expend dedicated credits for any purpose within the program or line item.
     (c) (i) An agency may expend dedicated credits in excess of the amount appropriated as

dedicated credits by the Legislature by following the procedures contained in this Subsection (5)(c).
     (ii) The agency shall develop a new work program and the justification for the work program and submit it to the Division of Finance and the director of the Governor's Office of Planning and Budget. Except for monies deposited as dedicated credits in the Drug Stamp Tax Fund under Section 59-19-105 or line items covering tuition and federal vocational funds at institutions of higher learning, any expenditure of dedicated credits in excess of amounts appropriated as dedicated credits by the Legislature may not be used to permanently increase personnel within the agency unless approved by the Legislature.
     (iii) The Division of Finance and the director of the Governor's Office of Planning and Budget shall review the program and submit their findings and recommendations to the governor.
     (iv) The governor may authorize the agency to expend its excess dedicated credits by approving the submitted work program.
     (v) The state's fiscal officer shall notify the Legislature by providing notice of the governor's action to the Office of Legislative Fiscal Analyst.
     (d) (i) All excess dedicated credits lapse to the appropriate fund at the end of the fiscal year unless the Legislature has designated the entire program or line item that is partially or fully funded from dedicated credits as nonlapsing.
     (ii) The Division of Finance shall determine the appropriate fund into which the dedicated credits lapse.
     (6) (a) Fixed collections are collections:
     (i) fixed by law or by the appropriation act at a specific amount; and
     (ii) required by law to be deposited into a separate line item and program.
     (b) The Legislature may establish by law the maximum amount of fixed collections that an agency may expend.
     (c) If an agency receives less than the maximum amount of expendable fixed collections established by law, the agency's authority to expend is limited to the amount of fixed collections that it receives.
     (d) If an agency receives fixed collections greater than the maximum amount of expendable fixed collections established by law, those excess amounts lapse to the General Fund, the Uniform School Fund, or the Transportation Fund as designated by the director of the Division of Finance at the end of the fiscal year.
     (7) (a) Unless otherwise specifically provided by law, when an agency has a program or line item that is funded by more than one major revenue type, the agency shall expend its dedicated credits and fixed collections first.
     (b) Unless otherwise specifically provided by law, when programs or line items are funded by more than one major revenue type and include both free revenue and restricted revenue, an agency shall expend those sources based upon a proration of the amounts appropriated from each of those major revenue types.

Amended by Chapter 16, 2003 General Session