Attorney General Funding Amendments

26
52-4-205
63J-1-410
63J-1-602.2
63J-1-1001
63J-1-1002
63J-1-1003
63J-1-1004
63J-1-1005
52-4-205
63J-1-410
63J-1-602.2
63J-1-1001
63J-1-1002
63J-1-1003
63J-1-1004
63J-1-1005
0
Attorney General Funding Amendments
2026 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Val L. Peterson
Senate Sponsor: Michael K. McKell
LONG TITLE
General Description:
This bill addresses funding for the Office of the Attorney General.
Highlighted Provisions:
This bill:
exempts the Office of the Attorney General (office) from the provisions governing
internal service funds with respect to charges for legal services the office provides to an
agency;
provides that when the office charges an agency for legal services, the office shall
calculate the charge based on the actual time spent on the legal services;
requires the office and each agency to annually agree on a retainer amount to be included
in the governor's proposed budget that represents the total anticipated cost of the
agency's legal services for the upcoming fiscal year;
after the Legislature appropriates each agency's retainer, directs the office and each
agency to execute a service-level agreement that includes the agency's expected legal
services needs, the rates at which the office will charge for the legal services, and
specified information about the money used to pay for the legal services;
establishes the Legal Services Retainer Fund into which each agency will transfer the
agency's retainer;
allows the office to use money in the Legal Services Retainer Fund to pay for the legal
services that the office charges to each agency during the fiscal year;
requires an agency to use the agency's existing budget to pay for any legal services
charges that exceed the agency's balance in the Legal Services Retainer Fund;
creates the Legal Services and Litigation Program to pay costs of defending the state in
civil litigation that meets specified criteria;
provides that appropriations made to the Legal Services and Litigation Program are
nonlapsing; and
makes technical and conforming changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
52-4-205
Effective
05/06/26
, as last amended by Laws of Utah 2025, Chapter 391
63J-1-410
Effective
05/06/26
, as last amended by Laws of Utah 2025, Chapters 350,
357
63J-1-602.2
Effective
05/06/26
Partially Repealed
07/01/29
, as last amended by Laws
of Utah 2025, First Special Session, Chapter 17
ENACTS:
63J-1-1001
Effective
05/06/26
, Utah Code Annotated 1953
63J-1-1002
Effective
05/06/26
, Utah Code Annotated 1953
63J-1-1003
Effective
05/06/26
, Utah Code Annotated 1953
63J-1-1004
Effective
05/06/26
, Utah Code Annotated 1953
63J-1-1005
Effective
05/06/26
, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section
52-4-205
is amended to read:
52-4-205
Effective
05/06/26
. Purposes of closed meetings -- Certain issues
prohibited in closed meetings.
(1)
A closed meeting described under Section
52-4-204
may only be held for:
(a)
except as provided in Subsection
(3)
, discussion of the character, professional
competence, or physical or mental health of an individual;
(b)
strategy sessions to discuss collective bargaining;
(c)
strategy sessions to discuss pending or reasonably imminent litigation;
(d)
strategy sessions to discuss the purchase, exchange, or lease of real property,
including any form of a water right or water shares, or to discuss a proposed
development agreement, project proposal, or financing proposal related to the
development of land owned by the state or a political subdivision, if public
discussion would:
(i)
disclose the appraisal or estimated value of the property under consideration; or
(ii)
prevent the public body from completing the transaction on the best possible
terms;
(e)
strategy sessions to discuss the sale of real property, including any form of a water
right or water shares, if:
(i)
public discussion of the transaction would:
(A)
disclose the appraisal or estimated value of the property under consideration;
or
(B)
prevent the public body from completing the transaction on the best possible
terms;
(ii)
the public body previously gave public notice that the property would be offered
for sale; and
(iii)
the terms of the sale are publicly disclosed before the public body approves the
sale;
(f)
discussion regarding deployment of security personnel, devices, or systems;
(g)
investigative proceedings regarding allegations of criminal misconduct;
(h)
as relates to the Independent Legislative Ethics Commission, conducting business
relating to the receipt or review of ethics complaints;
(i)
as relates to an ethics committee of the Legislature, a purpose permitted under
Section
52-4-204
;
(j)
as relates to the Independent Executive Branch Ethics Commission created in Section
63A-14-202
, conducting business relating to an ethics complaint;
(k)
as relates to a county legislative body, discussing commercial information as defined
in Section
59-1-404
;
(l)
as relates to the Utah Higher Education Savings Board of Trustees and its appointed
board of directors, discussing fiduciary or commercial information;
(m)
deliberations, not including any information gathering activities, of a public body
acting in the capacity of:
(i)
an evaluation committee under Title 63G, Chapter 6a, Utah Procurement Code,
during the process of evaluating responses to a solicitation, as defined in Section
63G-6a-103
;
(ii)
a protest officer, defined in Section
63G-6a-103
, during the process of making a
decision on a protest under Title 63G, Chapter 6a, Part 16, Protests; or
(iii)
a procurement appeals panel under Title 63G, Chapter 6a, Utah Procurement
Code, during the process of deciding an appeal under Title 63G, Chapter 6a, Part
17, Procurement Appeals Board;
(n)
the purpose of considering information that is designated as a trade secret, as defined
in Section
13-24-2
, if the public body's consideration of the information is necessary
to properly conduct a procurement under Title 63G, Chapter 6a, Utah Procurement
Code;
(o)
the purpose of discussing information provided to the public body during the
procurement process under Title 63G, Chapter 6a, Utah Procurement Code, if, at the
time of the meeting:
(i)
the information may not, under Title 63G, Chapter 6a, Utah Procurement Code, be
disclosed to a member of the public or to a participant in the procurement process;
and
(ii)
the public body needs to review or discuss the information to properly fulfill its
role and responsibilities in the procurement process;
(p)
as relates to the governing board of a governmental nonprofit corporation, as that
term is defined in Section
11-13a-102
, the purpose of discussing information that is
designated as a trade secret, as that term is defined in Section
13-24-2
, if:
(i)
public knowledge of the discussion would reasonably be expected to result in
injury to the owner of the trade secret; and
(ii)
discussion of the information is necessary for the governing board to properly
discharge the board's duties and conduct the board's business;
(q)
as it relates to the Cannabis Production Establishment Licensing Advisory Board, to
review confidential information regarding violations and security requirements in
relation to the operation of cannabis production establishments;
(r)
considering a loan application, if public discussion of the loan application would
disclose:
(i)
nonpublic personal financial information; or
(ii)
a nonpublic trade secret, as defined in Section
13-24-2
, or nonpublic business
financial information the disclosure of which would reasonably be expected to
result in unfair competitive injury to the person submitting the information;
(s)
a discussion of the board of the Point of the Mountain State Land Authority, created
in Section
11-59-201
, regarding a potential tenant of point of the mountain state land,
as defined in Section
11-59-102
; or
(t)
a purpose for which a meeting is required to be closed under Subsection
(2)
.
(2)
The following meetings shall be closed:
(a)
a meeting of the Health and Human Services Interim Committee to review a report
described in Subsection
26B-1-506(1)(a)
, and a response to the report described in
Subsection
26B-1-506(2)
;
(b)
a meeting of the Child Welfare Legislative Oversight Panel to:
(i)
review a report described in Subsection
26B-1-506(1)(a)
, and a response to the
report described in Subsection
26B-1-506(2)
; or
(ii)
review and discuss an individual case, as described in Section
36-33-103
;
(c)
a meeting of a conservation district as defined in Section
17D-3-102
for the purpose
of advising the Natural Resource Conservation Service of the United States
Department of Agriculture on a farm improvement project if the discussed
information is protected information under federal law;
(d)
a meeting of the Compassionate Use Board established in Section
26B-1-421
for the
purpose of reviewing petitions for a medical cannabis card in accordance with
Section
26B-1-421
;
(e)
a meeting of the Colorado River Authority of Utah if:
(i)
the purpose of the meeting is to discuss an interstate claim to the use of the water
in the Colorado River system; and
(ii)
failing to close the meeting would:
(A)
reveal the contents of a record classified as protected under Subsection
63G-2-305(81)
;
(B)
reveal a legal strategy relating to the state's claim to the use of the water in the
Colorado River system;
(C)
harm the ability of the Colorado River Authority of Utah or river
commissioner to negotiate the best terms and conditions regarding the use of
water in the Colorado River system; or
(D)
give an advantage to another state or to the federal government in negotiations
regarding the use of water in the Colorado River system;
(f)
a meeting of the General Regulatory Sandbox Program Advisory Committee if:
(i)
the purpose of the meeting is to discuss an application for participation in the
regulatory sandbox as defined in Section
63N-16-102
; and
(ii)
failing to close the meeting would reveal the contents of a record classified as
protected under Subsection
63G-2-305(82)
;
(g)
a meeting of a project entity if:
(i)
the purpose of the meeting is to conduct a strategy session to discuss market
conditions relevant to a business decision regarding the value of a project entity
asset if the terms of the business decision are publicly disclosed before the
decision is finalized and a public discussion would:
(A)
disclose the appraisal or estimated value of the project entity asset under
consideration; or
(B)
prevent the project entity from completing on the best possible terms a
contemplated transaction concerning the project entity asset;
(ii)
the purpose of the meeting is to discuss a record, the disclosure of which could
cause commercial injury to, or confer a competitive advantage upon a potential or
actual competitor of, the project entity;
(iii)
the purpose of the meeting is to discuss a business decision, the disclosure of
which could cause commercial injury to, or confer a competitive advantage upon a
potential or actual competitor of, the project entity; or
(iv)
failing to close the meeting would prevent the project entity from getting the best
price on the market;
and
(h)
a meeting of the Rules Review and General Oversight Committee to review and
discuss:
(i)
an individual child welfare case as described in Subsection
36-35-102(3)(c)
; or
(ii)
information that is subject to a confidentiality agreement as described in
Subsection
36-35-102(3)(c)
.
36-35-102(3)(c)
; and
(i)
a meeting of the Legislative Management Committee to discuss a notice from the
Office of the Attorney General provided in accordance with Section
63J-1-1005
.
(3)
In a closed meeting, a public body may not:
(a)
interview a person applying to fill an elected position;
(b)
discuss filling a midterm vacancy or temporary absence governed by Title 20A,
Chapter 1, Part 5, Candidate Vacancy and Vacancy and Temporary Absence in
Elected Office; or
(c)
discuss the character, professional competence, or physical or mental health of the
person whose name was submitted for consideration to fill a midterm vacancy or
temporary absence governed by Title 20A, Chapter 1, Part 5, Candidate Vacancy and
Vacancy and Temporary Absence in Elected Office.
Section 2. Section
63J-1-410
is amended to read:
63J-1-410
Effective
05/06/26
. Internal service funds -- Governance and review.
(1)
For purposes of this section:
(a)
"Agency" means a department, division, office, bureau, or other unit of state
government, and includes any subdivision of an agency.
(b)
"Do not replace vehicles" means a vehicle accounted for in the Division of Fleet
Operations for which charges to an agency for its use do not include amounts to
cover depreciation or to accumulate assets to replace the vehicle at the end of its
useful life.
(c)
"Internal service fund agency" means an agency that provides goods or services to
other agencies of state government or to other governmental units on a capital
maintenance and cost reimbursement basis, and which recovers costs through
interagency billings.
(d)
"Revolving loan fund" means each of the revolving loan funds defined in Section
63A-3-205
.
(2)
An internal service fund agency is not subject to this section with respect to its
administration of a revolving loan fund.
(3)
(a)
An internal service fund agency may not bill another agency for services that it
provides for each internal service fund operated by the agency, unless the Legislature
has:
(i)
reviewed and approved each internal service fund's budget request;
(ii)
reviewed and approved each internal service fund's rates, fees, and other amounts
that it charges those who use its services and included those rates, fees, and
amounts in an appropriation act;
(iii)
approved the number of full-time positions of each internal service fund as part
of the annual appropriation process;
(iv)
reviewed the number of full-time equivalent contract employees of each internal
service fund as part of the annual appropriation process; and
(v)
appropriated to the internal service fund agency each internal service fund's
estimated revenue based upon the rates and fee structure that are the basis for the
estimate.
(b)
If an internal service fund agency operates more than one internal service fund
within the internal service fund agency, the internal service fund agency shall comply
with the review and approval requirements under Subsection
(3)(a)
for each internal
service fund.
(c)
If an internal service fund agency operates an internal service fund and does not get
the approvals required under Subsection
(3)(a)
or
(4)(c)
, the internal service fund
agency shall rebate all rates, fees, and amounts collected to those who use the
services for the rates, fees, and amounts collected that were not approved under
Subsection
(3)(a)
or
(4)(c)
.
(4)
(a)
An internal service fund agency may charge a rate, fee, or other amount that is
less than the rate, fee, or other amount established by the Legislature in an
appropriations act if the internal service fund agency first reports to the Governor's
Office of Planning and Budget and the Office of the Legislative Fiscal Analyst the
internal service fund agency's justification for reducing the rate, fee, or other amount.
(b)
Except as provided in Subsections
(4)(c)
and
(d)
, an internal service fund agency
may not charge rates, fees, and other amounts that exceed the rates, fees, and
amounts approved by the Legislature in an appropriations act.
(c)
(i)
An internal service fund agency that begins a new service or introduces a new
product between annual general sessions of the Legislature may, for that service
or product:
(A)
establish and charge an interim rate or amount;
(B)
acquire contract employees, if necessary; or
(C)
do a combination of Subsections
(4)(c)(i)(A)
and
(B)
.
(ii)
The internal service fund agency shall:
(A)
submit the interim rate or amount under Subsection
(4)(c)(i)
to the Legislature
for approval at the next annual general session; and
(B)
report any change in the number of contract employees under Subsection
(4)(c)(i)
to the appropriate legislative appropriations subcommittee for review.
(d)
An internal service fund agency may, in a fiscal year, charge rates, fees, and other
amounts that exceed the rates, fees, or amounts approved by the Legislature in an
appropriations act, if:
(i)
during the immediately preceding annual general session, the Legislature
appropriates money to each state agency to pay for an increase in the state
agency's employee's compensation;
(ii)
within 90 days after the day on which the Legislature adjourns the general session
sine die, the internal service fund agency submits a proposed increased rate
schedule to the rate committee established in Section
63A-1-114
that adjusts the
rates, fees, and amounts approved by the Legislature to reflect the percentage
increase that the Legislature appropriated for state agency employee compensation
under Subsection
(4)(d)(i)
;
(iii)
the rate committee approves the proposed increased rate schedule described in
Subsection
(4)(d)(ii)
during the meeting described in Subsection
63A-1-114(4)
;
and
(iv)
the internal service fund agency uses all the revenue from the rate schedule
increase under this Subsection
(4)(d)
to increase the internal service fund agency's
employee's compensation in an amount equivalent to the state agency employee
compensation increase described in Subsection
(4)(d)(i)
.
(5)
The internal service fund agency budget request shall separately identify the capital
needs and the related capital budget.
(6)
In the fiscal year that the accounting change referred to in Subsection
51-5-6(2)
is
implemented by the Division of Finance, the Division of Finance shall transfer equity
created by that accounting change to any internal service fund agency up to the amount
needed to eliminate any long-term debt and deficit working capital in the fund.
(7)
No new internal service fund agency may be established unless reviewed and approved
by the Legislature.
(8)
(a)
Except as provided in Subsection
(8)(f)
, an internal service fund agency may not
acquire capital assets unless legislative approval for acquisition of the assets has been
included in an appropriations act for the internal service fund agency.
(b)
An internal service fund agency may not acquire capital assets after the transfer
mandated by Subsection
(6)
has occurred unless the internal service fund agency has
adequate working capital.
(c)
The internal service fund agency shall provide working capital from the following
sources in the following order:
(i)
first, from operating revenues to the extent allowed by state rules and federal
regulations;
(ii)
second, from long-term debt, subject to the restrictions of this section; and
(iii)
last, from an appropriation.
(d)
(i)
To eliminate negative working capital, an internal service fund agency may
incur long-term debt from the General Fund or Special Revenue Funds to acquire
capital assets.
(ii)
The internal service fund agency shall repay all long-term debt borrowed from the
General Fund or Special Revenue Funds by making regular payments over the
useful life of the asset according to the asset's depreciation schedule.
(e)
(i)
The Division of Finance may not allow an internal service fund agency's
borrowing to exceed 90% of the net book value of the agency's capital assets as of
the end of the fiscal year.
(ii)
If an internal service fund agency wishes to purchase authorized assets or enter
into equipment leases that would increase its borrowing beyond 90% of the net
book value of the agency's capital assets, the agency may purchase those assets
only with money appropriated from another fund, such as the General Fund or a
special revenue fund.
(f)
(i)
Except as provided in Subsection
(8)(f)(ii)
, capital assets acquired through
agency appropriation may not be transferred to any internal service fund agency
without legislative approval.
(ii)
Vehicles acquired by agencies from appropriated funds or money appropriated to
agencies to be used for vehicle purchases may be transferred to the Division of
Fleet Operations and, when transferred, become part of the Fleet Operations
Internal Service Fund.
(iii)
Vehicles acquired with funding from sources other than state appropriations or
acquired through the federal surplus property donation program may be
transferred to the Division of Fleet Operations and, when transferred, become part
of the Fleet Operations Internal Service Fund.
(iv)
Unless otherwise approved by the Legislature, vehicles acquired under
Subsection
(8)(f)(iii)
shall be accounted for as "do not replace" vehicles.
(9)
The Division of Finance shall adopt policies and procedures related to the accounting
for assets, liabilities, equity, revenues, expenditures, and transfers of internal service
funds agencies.
(10)
Beginning July 1, 2027, this part does not apply to charges that are:
(a)
for legal services provided by the Office of the Attorney General; and
(b)
governed by Title 63J, Chapter 1, Part 10, Funding for Attorney General Services.
Section 3. Section
63J-1-602.2
is amended to read:
63J-1-602.2
Effective
05/06/26
Partially Repealed
07/01/29
. List of nonlapsing
appropriations to programs.
Appropriations made to the following programs are nonlapsing:
(1)
The Legislature and the Legislature's committees.
(2)
The State Board of Education, including all appropriations to agencies, line items, and
programs under the jurisdiction of the State Board of Education, in accordance with
Section
53F-9-103
.
(3)
The Rangeland Improvement Act created in Section
4-20-101
.
(4)
The Percent-for-Art Program created in Section
9-6-404
.
(5)
The LeRay McAllister Working Farm and Ranch Fund Program created in Title
4,
Chapter 46, Part 3
, LeRay McAllister Working Farm and Ranch Fund.
(6)
The Utah Lake Authority created in Section
11-65-201
.
(7)
Dedicated credits accrued to the Utah Marriage Commission as provided under
Subsection
17-66-303(2)(d)(ii)
.
(8)
The Wildlife Land and Water Acquisition Program created in Section
23A-6-205
.
(9)
Sanctions collected as dedicated credits from Medicaid providers under Subsection
26B-3-108(7)
.
(10)
The primary care grant program created in Section
26B-4-310
.
(11)
The Opiate Overdose Outreach Pilot Program created in Section
26B-4-512
.
(12)
The Utah Health Care Workforce Financial Assistance Program created in Section
26B-4-702
.
(13)
The Rural Physician Loan Repayment Program created in Section
26B-4-703
.
(14)
The Utah Medical Education Council for the:
(a)
administration of the Utah Medical Education Program created in Section
26B-4-707
;
(b)
provision of medical residency grants described in Section
26B-4-711
; and
(c)
provision of the forensic psychiatric fellowship grant described in Section
26B-4-712
.
(15)
The Division of Services for People with Disabilities, as provided in Section
26B-6-402
.
(16)
The Communication Habits to reduce Adolescent Threats (CHAT) Pilot Program
created in Section
26B-7-122
.
(17)
Funds that the Department of Alcoholic Beverage Services retains in accordance with
Subsection
32B-2-301(8)(a)
or
(b)
.
(18)
The General Assistance program administered by the Department of Workforce
Services, as provided in Section
35A-3-401
.
(19)
The Utah National Guard, created in Title
39A, National Guard and Militia Act
.
(20)
The Search and Rescue Financial Assistance Program, as provided in Section
53-2a-1102
.
(21)
The Emergency Medical Services Grant Program, as provided in Section
53-2d-207
.
(22)
The Motorcycle Rider Education Program, as provided in Section
53-3-905
.
(23)
The Utah Board of Higher Education for teacher preparation programs, as provided in
Section
53H-5-402
.
(24)
Innovation grants under Section
53G-10-608
, except as provided in Subsection
53G-10-608(3)
.
(25)
The Division of Fleet Operations for the purpose of upgrading underground storage
tanks under Section
63A-9-401
.
(26)
The Division of Technology Services for technology innovation as provided under
Section
63A-16-903
.
(27)
The State Capitol Preservation Board created by Section
63O-2-201
.
(28)
The Office of Administrative Rules for publishing, as provided in Section
63G-3-402
.
(29)
The Colorado River Authority of Utah, created in Title
63M, Chapter 14
, Colorado
River Authority of Utah Act.
(30)
The Governor's Office of Economic Opportunity to fund the Enterprise Zone Act, as
provided in Title
63N, Chapter 2, Part 2
, Enterprise Zone Act.
(31)
The Governor's Office of Economic Opportunity's Rural Employment Expansion
Program, as described in Title
63N, Chapter 4, Part 4
, Rural Employment Expansion
Program.
(32)
County correctional facility contracting program for state inmates as described in
Section
64-13e-103
.
(33)
County correctional facility reimbursement program for state probationary inmates and
state parole inmates as described in Section
64-13e-104
.
(34)
Programs for the Jordan River Recreation Area as described in Section
65A-2-8
.
(35)
The Division of Human Resource Management user training program, as provided in
Section
63A-17-106
.
(36)
A public safety answering point's emergency telecommunications service fund, as
provided in Section
69-2-301
.
(37)
The Traffic Noise Abatement Program created in Section
72-6-112
.
(38)
The money appropriated from the Navajo Water Rights Negotiation Account to the
Division of Water Rights, created in Section
73-2-1.1
, for purposes of participating in a
settlement of federal reserved water right claims.
(39)
The Judicial Council for compensation for special prosecutors, as provided in Section
77-10a-19
.
(40)
A state rehabilitative employment program, as provided in Section
78A-6-210
.
(41)
The Utah Geological Survey, as provided in Section
79-3-401
.
(42)
The Bonneville Shoreline Trail Program created under Section
79-5-503
.
(43)
Adoption document access as provided in Sections
81-13-103
,
81-13-504
, and
81-13-505
.
(44)
Indigent defense as provided in Title
78B, Chapter 22, Part 4
, Utah Indigent Defense
Commission.
(45)
The program established by the Division of Facilities Construction and Management
under Section
63A-5b-703
under which state agencies receive an appropriation and pay
lease payments for the use and occupancy of buildings owned by the Division of
Facilities Construction and Management.
(46)
The State Tax Commission for reimbursing counties for deferrals in accordance with
Section
59-2-1802.5
.
(47)
The Veterinarian Education Loan Repayment Program created in Section
4-2-902
.
(48)
The Legal Services and Litigation Program created in Section
63J-1-1005
.
Section 4. Section
63J-1-1001
is enacted to read:
10. Funding for Attorney General Services
63J-1-1001
Effective
05/06/26
. Definitions.
(1)
"Agency" means an agency as defined in Section
63J-1-102
that receives legal services
from the office.
(2)
"Biller" means an attorney or a paralegal who provides legal services to an agency on
the office's behalf.
(3)
"Legal services" means any form of legal advice or legal representation that is subject to
the laws of the state.
(4)
"Office" means the Office of the Attorney General.
(5)
"Retainer" means the total amount an agency expects to expend during a fiscal year on
legal services provided by the office.
(6)
"Rate category" means a segment of billers defined by the office for whom the office
charges the same hourly rate when providing legal services to an agency.
(7)
"Service-level agreement" means the written agreement described in Section
63J-1-1002
.
Section 5. Section
63J-1-1002
is enacted to read:
63J-1-1002
Effective
05/06/26
. Annual retainer -- Service-level agreements.
(1)
(a)
Beginning July 1, 2027, in accordance with this part, the office shall invoice each
agency for legal services the office provides.
(b)
The office shall calculate the amount the office invoices based on:
(i)
the actual time expended by a biller, recorded in increments of no greater than
fifteen minutes; and
(ii)
an hourly rate the office establishes for the biller's rate category.
(c)
The office shall ensure that the hourly rate the office establishes for a rate category
reflects the total compensation of billers in the rate category, plus a reasonable
overhead allocation.
(2)
(a)
Before October 1 each year:
(i)
the office and each agency that requires legal services from the office during the
upcoming fiscal year shall jointly agree to a retainer for the upcoming fiscal year;
and
(ii)
each agency shall report to the Governor's Office of Planning and Budget the
agency's retainer for the upcoming fiscal year.
(b)
The governor shall account for each retainer in the proposed budget the governor
submits in accordance with Section
63J-1-201
.
(3)
After the general session during which the Legislature considers the amounts for
retainers included in the governor's budget under Subsection
(2)
and before the start of
the fiscal year, the office and each agency shall enter into a written service-level
agreement that establishes for the upcoming fiscal year:
(a)
the legal services the agency anticipates needing;
(b)
for each rate category, the estimated number of hours necessary to perform the legal
services described in Subsection
(3)(a)
;
(c)
the hourly rate for each rate category;
(d)
(i)
the amount the Legislature appropriated for the agency's retainer; or
(ii)
if the office and agency determine that the amount appropriated for the agency's
retainer exceeds the amount the agency expects to expend on legal services under
the service-level agreement, the revised retainer;
(e)
the source of funding the agency will use to pay for the cost of any legal services
from the office that exceeds the retainer described in Subsection
(3)(d)
;
(f)
processes and controls the office will use to track the agency's retainer; and
(g)
how the agency will allocate available funds, including federal funds and restricted
funds, to pay for legal services covered by or exceeding the appropriated retainer.
(4)
On July 1 following execution of the service-level agreement, each agency shall transfer
into the Legal Services Retainer Fund created in Section
63J-1-1004
an amount
sufficient to ensure the amount available in the Legal Services Retainer Fund for the
agency's legal services is equal to the retainer included in the service-level agreement
under Subsection
(3)(d)
.
Section 6. Section
63J-1-1003
is enacted to read:
63J-1-1003
Effective
05/06/26
. Billing.
(1)
(a)
The office shall provide each agency with a monthly billing report that accounts
for all legal services the office provided the agency during the immediately preceding
calendar month.
(b)
The office shall include in each billing report:
(i)
an itemized accounting of the time spent on each matter for the agency;
(ii)
the total amount charged to the agency during the reporting period;
(iii)
the cumulative amount charged to the agency for the fiscal year to date; and
(iv)
the remaining balance of the agency's retainer.
(2)
(a)
In accordance with Section
63J-1-1004
, the office shall use the agency's retainer
to satisfy the office's monthly charges to the agency for legal services.
(b)
If the remainder of an agency's retainer is insufficient to satisfy the office's monthly
charges to the agency, the agency shall pay the remaining balance using the funding
source identified in the service-level agreement.
(c)
The office may not use an agency's retainer to pay charges incurred by another
agency.
(3)
For each agency under the governor's authority, the office shall provide a monthly
report to the Governor's Office of Planning and Budget that includes the information
described in Subsections
(1)(b)(ii)
through
(iv)
.
Section 7. Section
63J-1-1004
is enacted to read:
63J-1-1004
Effective
05/06/26
. Legal Services Retainer Fund.
(1)
There is created an expendable special revenue fund known as the Legal Services
Retainer Fund.
(2)
The fund consists of transfers from agencies to pay for the office's legal services,
including retainers transferred into the account in accordance with Section
63J-1-1002
.
(3)
(a)
The office shall administer the fund and may expend money from the fund as
provided in this part to pay for amounts the office charges an agency for legal
services.
(b)
As provided in Section
63J-1-1003
, the office may not use an agency's retainer to
pay charges incurred by another agency.
Section 8. Section
63J-1-1005
is enacted to read:
63J-1-1005
Effective
05/06/26
. Legal Services and Litigation Program.
(1)
There is created within the office the Legal Services and Litigation Program to be
funded by appropriations made by the Legislature.
(2)
Subject to the provisions of this section, the office shall administer the program for the
purpose of representing the state in civil litigation that:
(a)
challenges the constitutionality of a state statute or other legislative enactment;
(b)
involves a matter of statewide importance; or
(c)
is not paid for through the Risk Management Fund created in Section
63A-4-201
.
(3)
The office may expend funds from the program to pay for a matter described in
Subsection
(2)
:
(a)
upon the attorney general's determination that the matter satisfies the criteria
described in Subsection
(2)
; and
(b)
(i)
if the office anticipates the office's total costs related to the matter will be more
than $100,000 but less than $500,000, after providing notice to:
(A)
the president of the Senate and the speaker of the House of Representatives;
and
(B)
if the matter involves an agency under the governor's authority, the governor;
or
(ii)
if the office anticipates the office's total costs related to the matter will exceed
$500,000, after providing notice to:
(A)
the Legislative Management Committee; and
(B)
if the matter involves an agency under the governor's authority, the governor.
Section 9.
Effective Date.
This bill takes effect on
May 6, 2026
.
3-12-26 9:02 AM