Executive Branch Agency Amendments

33
63A-1-109
63A-1-111
63A-3-202.5
63A-3-203
63A-17-402
67-1-18
0
Executive Branch Agency Amendments
2026 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Norman K Thurston
Senate Sponsor: Evan J. Vickers
LONG TITLE
General Description:
This bill addresses executive branch agencies.
Highlighted Provisions:
This bill:
clarifies that the Utah Office of Data Privacy is an office within the Department of
Government Operations (department);
clarifies that the department exercises oversight of the state's comprehensive accounting
system and executive branch payroll services;
subjects the Division of Finance's establishment of the comprehensive state accounting
system to departmental oversight;
replaces the requirement that the director of the Division of Finance audit all claims
against the state with a requirement that the director oversee internal controls relating to
state financial transactions;
updates the definition of "executive branch entity" for purposes of executive branch
payroll services by:
removing a date-specific reference to participation in the Division of Finance's central
payroll system; and
adding the Division of Technology Services as an entity included within the definition;
changes the title of certain gubernatorial appointees to "commissioner," beginning on
May 6, 2026; and
makes technical and conforming changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
63A-1-109
, as last amended by Laws of Utah 2022, Chapter 169
63A-1-111
, as last amended by Laws of Utah 2016, Chapters 193, 298
63A-3-202.5
, as renumbered and amended by Laws of Utah 2024, Chapter 398
63A-3-203
, as last amended by Laws of Utah 2024, Chapter 398
63A-17-402
, as renumbered and amended by Laws of Utah 2021, Chapter 344
ENACTS:
67-1-18
, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section
63A-1-109
is amended to read:
63A-1-109
. Divisions of department -- Administration.
(1)
The department is composed of:
(a)
the following divisions:
(i)
the Division of Purchasing and General Services, created in Section
63A-2-101
;
(ii)
the Division of Finance, created in Section
63A-3-101
;
(iii)
the Division of Facilities Construction and Management, created in Section
63A-5b-301
;
(iv)
the Division of Fleet Operations, created in Section
63A-9-201
;
(v)
the Division of Archives and Records Service, created in Section
63A-12-101
;
(vi)
the Division of Technology Services, created in Section
63A-16-103
;
(vii)
the Division of Human Resource Management, created in Section
63A-17-105
;
and
(viii)
the Division of Risk Management, created in Section
63A-16-201
63A-4-101.5
;
and
(b)
the Office of Administrative Rules, created in Section
63G-3-401
.
; and
(c)
the Utah Office of Data Privacy, created in Section
63A-19-301
.
(2)
Each division described in Subsection
(1)(a)
shall be administered and managed by a
division director.
(3)
The department shall exercise oversight of:
(a)
the comprehensive state accounting system established by the Division of Finance
under Section
63A-3-202.5
; and
(b)
payroll services provided by the Division of Human Resource Management under
Section
63A-17-402
, including the use of the central payroll system developed by the
Division of Finance.
Section 2. Section
63A-1-111
is amended to read:
63A-1-111
. Service plans established by each division -- Contents -- Distribution.
(1)
Each division and each office of the department
described in Subsections
63A-1-109(1)(a)
and
(b)

shall formulate and establish service plans for each fiscal year.
(2)
The service plans shall describe:
(a)
the services to be rendered to state agencies;
(b)
the methods of providing those services;
(c)
the standards of performance; and
(d)
the performance measures used to gauge compliance with those standards.
(3)
Before the beginning of each fiscal year, the service plans shall be distributed to each
state agency that uses the services provided by that division.
Section 3. Section
63A-3-202.5
is amended to read:
63A-3-202.5
. Comprehensive state accounting system -- Approval of agency
accounting systems -- Cost accounting systems required.
(1)
The
Subject to the oversight of the department, the
director of the Division of Finance
shall establish a comprehensive state accounting system.
(2)
Officers, departments, agencies, and institutions of

Utah may create and maintain
accounting systems only with the approval of the director.
(3)
The director may, with the approval of the executive director, require any department or
institution to install and maintain a cost accounting system that will disclose the unit cost
of material or service produced or performed by a department.
Section 4. Section
63A-3-203
is amended to read:
63A-3-203
. Accounting control over state departments and agencies --
Prescription and approval of financial forms and accounting systems.
(1)
The director of the Division of Finance shall:
(a)
exercise accounting control over all state departments and agencies except
institutions of higher education; and
(b)
prescribe the manner and method of certifying that funds are available and adequate
to meet all contracts and obligations.
(2)
(a)
The director shall
audit all claims against the state for which an appropriation is
made
monitor internal controls over state financial transactions to ensure that the
controls are designed, implemented, and operating effectively
.
(b)
The director may satisfy the requirement described in Subsection
(2)(a)
by relying on
audits, reviews, or monitoring conducted by audit teams of state departments and
agencies subject to the director's accounting control.
(3)
(a)
The director shall prescribe:
(i)
(a)
all forms of requisitions, receipts, vouchers, bills, or claims to be used by all state
departments and agencies; and
(ii)
(b)
all forms to be used by the division.
(b)
Before approving the forms in Subsection (3)(a), the director shall obtain approval
from the state auditor that the forms will adequately facilitate the post-audit of public
accounts.
(4)
Before implementation by any state agency, the director of the Division of Finance shall
review and approve any accounting system developed by a state agency.
(5)
If a state agency does not obtain the approval described in Subsection
(4)
, the director
may:
(a)
require the state agency to cease all development activity related to the accounting
system; and
(b)
(i)
establish conditions of future development of the accounting system; or
(ii)
deny implementation of the accounting system.
Section 5. Section
63A-17-402
is amended to read:
63A-17-402
. Division provides payroll services to executive branch agencies --
Report.
(1)
As used in this section:
(a)
(i)
"Executive branch entity" means a department, division, agency, board, or
office within the executive branch of state government that employs a person who
is paid through the central payroll system developed by the Division of Finance

as of December 31, 2011
.
(ii)
"Executive branch entity" does not include:
(A)
the Office of the Attorney General;
(B)
the Office of the State Treasurer;
(C)
the Office of the State Auditor;
(D)
the Department of Transportation;
(E)
the Division of Technology Services;
(F)
(E)
the Department of Public Safety;
(G)
(F)
the Department of Natural Resources; or
(H)
(G)
the Utah Schools for the Deaf and the Blind.
(b)
(i)
"Payroll services" means using the central payroll system as directed by the
Division of Finance to:
(A)
enter and validate payroll reimbursements, which include reimbursements for
mileage, a service award, and other wage types;
(B)
calculate, process, and validate a retirement;
(C)
enter a leave adjustment; and
(D)
certify payroll by ensuring an entry complies with a rule or policy adopted by
the department or the Division of Finance.
(ii)
"Payroll services" does not mean:
(A)
a function related to payroll that is performed by an employee of the Division
of Finance;
(B)
a function related to payroll that is performed by an executive branch agency
on behalf of a person who is not an employee of the executive branch agency;
(C)
the entry of time worked by an executive branch agency employee into the
central payroll system; or
(D)
approval or verification by a supervisor or designee of the entry of time
worked.
(2)
The division shall
, subject to the oversight of the department,
provide payroll services to
all executive branch entities.
(3)
After September 19, 2012, an executive branch entity, other than the division or the
Division of Finance, may not create a full-time equivalent position or part-time position,
or request an appropriation to fund a full-time equivalent position or part-time position
for the purpose of providing payroll services to the entity.
Section 6. Section
67-1-18
is enacted to read:
67-1-18
. Gubernatorial appointees -- Change in title.
(1)
Notwithstanding any other provision of law, beginning on May 6, 2026, the following
gubernatorial appointees holding the title of executive director or director shall hold the
title of commissioner:
(a)
the director of the Department of Alcoholic Beverage Services, appointed under
Section
32B-2-205
;
(b)
the executive director of the Department of Commerce, appointed under Section
13-1-3
;
(c)
the executive director of the Department of Corrections, appointed under Section
64-13-3
;
(d)
the executive director of the Department of Cultural and Community Engagement,
appointed under Section
9-1-201.1
;
(e)
the executive director of the Department of Environmental Quality, appointed under
Section
19-1-104
;
(f)
the executive director of the Department of Government Operations, appointed under
Section
63A-1-105
;
(g)
the executive director of the Department of Health and Human Services, appointed
under Section
26B-1-203
;
(h)
the executive director of the Department of Natural Resources, appointed under
Section
79-2-202
;
(i)
the executive director of the Department of Transportation, appointed under Section
72-1-202
;
(j)
the executive director of the Department of Veterans and Military Affairs, appointed
under Section
71A-1-201
;
(k)
the executive director of the Department of Workforce Services, appointed under
Section
35A-1-201
;
(l)
the executive director of the Governor's Office of Economic Opportunity, appointed
under Section
63N-1a-302
; and
(m)
the executive director of the State Commission on Criminal and Juvenile Justice,
appointed under Section
63M-7-203
.
(2)
Other than with respect to the change in title, this section does not alter the duties,
compensation, or authority of a gubernatorial appointee described in Subsection
(1)
.
Section 7.
Effective Date.
This bill takes effect on
May 6, 2026
.
3-3-26 9:41 AM