and (ii) the minimum performance standards created by the department under Subsection 26A-1-106(4);

(b) review the allocation of environmental quality resources between the department and the local health departments, including whether funds allocated by contract or - 3 - S.B.

148 Enrolled Copy cooperative agreement were:

(i) allocated in accordance with the formula described in Section 26A-1-116;

and (ii) subject to requirements satisfying or exceeding the minimum performance standards created by the department under Section 26A-1-106;

(c) evaluate rules and department policies that affect a local health department in accordance with Subsection (4);

(d) consider policy changes proposed by the department or by a local health department;

(e) coordinate the implementation of environmental quality programs to maximize environmental quality resources;

(f) except as provided by Subsection (3)(g), review each department application for any federal funding that affects a local health department before the department submits the application;

and (g) establish a process by which the committee may exempt an application for federal funding from the review required under Subsection (3)(f).

(4) When evaluating a policy or rule that affects a local health department, the governance committee shall:

(a) compute an estimate of the cost a local health department will bear to comply with the policy or rule;

(b) specify whether there is any funding provided to a local health department to implement the policy or rule;

and (c) advise whether the policy or rule is needed.

(5) The governance committee shall create bylaws to govern the committee's operations.

(6) Before November 1 of each year, the department shall provide a report to the [Rules Review and General Oversight ] General Oversight Committee regarding the determinations made under Subsection (4).

Section 2.

Section 19-1-206 is amended to read:

19-1-206 (Effective 05/06/26).

Contracting powers of department -- Health insurance coverage.

(1) As used in this section:

(a) "Aggregate" means the sum of all contracts, change orders, and modifications related to a single project.

(b) "Change order" means the same as that term is defined in Section 63G-6a-103.

(c) "Employee" means, as defined in Section 34A-2-104, an "employee," "worker," or "operative" who:

- 4 - Enrolled Copy S.B.

148 (i) works at least 30 hours per calendar week;

and (ii) meets employer eligibility waiting requirements for health care insurance, which may not exceed the first day of the calendar month following 60 days after the day on which the individual is hired.

(d) "Health benefit plan" means:

(i) the same as that term is defined in Section 31A-1-301;

or (ii) an employee welfare benefit plan:

(A) established under the Employee Retirement Income Security Act of 1974, 29 U.S.C.

Sec.

1001 et seq.;

(B) for an employer with 100 or more employees;

and (C) in which the employer establishes a self-funded or partially self-funded group health plan to provide medical care for the employer's employees and dependents of the employees.

(e) "Qualified health coverage" means the same as that term is defined in Section 26B-3-909.

(f) "Subcontractor" means the same as that term is defined in Section 63A-5b-605.

(g) "Third party administrator" or "administrator" means the same as that term is defined in Section 31A-1-301.

(2) Except as provided in Subsection (3), the requirements of this section apply to:

(a) a contractor of a design or construction contract entered into by, or delegated to, the department, or a division or board of the department, on or after July 1, 2009, if the prime contract is in an aggregate amount equal to or greater than $2,000,000;

and (b) a subcontractor of a contractor of a design or construction contract entered into by, or delegated to, the department, or a division or board of the department, on or after July 1, 2009, if the subcontract is in an aggregate amount equal to or greater than $1,000,000.

(3) This section does not apply to contracts entered into by the department or a division or board of the department if:

(a) the application of this section jeopardizes the receipt of federal funds;

(b) the contract or agreement is between:

(i) the department or a division or board of the department;

and (ii)(A) another agency of the state;

(B) the federal government;

(C) another state;

- 5 - S.B.

148 Enrolled Copy (D) an interstate agency;

(E) a political subdivision of this state;

or (F) a political subdivision of another state;

(c) the executive director determines that applying the requirements of this section to a particular contract interferes with the effective response to an immediate health and safety threat from the environment;

or (d) the contract is:

(i) a sole source contract;

or (ii) an emergency procurement.

(4) A person that intentionally uses change orders, contract modifications, or multiple contracts to circumvent the requirements of this section is guilty of an infraction.

(5)(a) A contractor subject to the requirements of this section shall demonstrate to the executive director that the contractor has and will maintain an offer of qualified health coverage for the contractor's employees and the employees' dependents during the duration of the contract by submitting to the executive director a written statement that:

(i) the contractor offers qualified health coverage that complies with Section 26B-3-909;

(ii) is from:

(A) an actuary selected by the contractor or the contractor's insurer;

(B) an underwriter who is responsible for developing the employer group's premium rates;

or (C) if the contractor provides a health benefit plan described in Subsection (1)(d)(ii), an actuary or underwriter selected by a third party administrator;

and (iii) was created within one year before the day on which the statement is submitted.

(b)(i) A contractor that provides a health benefit plan described in Subsection (1)(d)(ii) shall provide the actuary or underwriter selected by an administrator, as described in Subsection (5)(a)(ii)(C), sufficient information to determine whether the contractor's contribution to the health benefit plan and the actuarial value of the health benefit plan meet the requirements of qualified health coverage.

(ii) A contractor may not make a change to the contractor's contribution to the health benefit plan, unless the contractor provides notice to:

(A) the actuary or underwriter selected by an administrator, as described in Subsection (5)(a)(ii)(C), for the actuary or underwriter to update the written - 6 - Enrolled Copy S.B.

148 statement described in Subsection (5)(a) in compliance with this section;

and (B) the department.

(c) A contractor that is subject to the requirements of this section shall:

(i) place a requirement in each of the contractor's subcontracts that a subcontractor that is subject to the requirements of this section shall obtain and maintain an offer of qualified health coverage for the subcontractor's employees and the employees' dependents during the duration of the subcontract;

and (ii) obtain from a subcontractor that is subject to the requirements of this section a written statement that:

(A) the subcontractor offers qualified health coverage that complies with Section 26B-3-909;

(B) is from an actuary selected by the subcontractor or the subcontractor's insurer, an underwriter who is responsible for developing the employer group's premium rates, or if the subcontractor provides a health benefit plan described in Subsection (1)(d)(ii), an actuary or underwriter selected by an administrator;

and (C) was created within one year before the day on which the contractor obtains the statement.

(d)(i)(A) A contractor that fails to maintain an offer of qualified health coverage described in Subsection (5)(a) during the duration of the contract is subject to penalties in accordance with administrative rules adopted by the department under Subsection (6).

(B) A contractor is not subject to penalties for the failure of a subcontractor to obtain and maintain an offer of qualified health coverage described in Subsection (5)(c)(i).

(ii)(A) A subcontractor that fails to obtain and maintain an offer of qualified health coverage described in Subsection (5)(c) during the duration of the subcontract is subject to penalties in accordance with administrative rules adopted by the department under Subsection (6).

(B) A subcontractor is not subject to penalties for the failure of a contractor to maintain an offer of qualified health coverage described in Subsection (5)(a).

(6) The department shall adopt administrative rules:

(a) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;

(b) in coordination with:

- 7 - S.B.

148 Enrolled Copy (i) a public transit district in accordance with Section 17B-2a-818.5;

(ii) the Department of Natural Resources in accordance with Section 79-2-404;

(iii) the Division of Facilities Construction and Management in accordance with Section 63A-5b-607;

(iv) the State Capitol Preservation Board in accordance with Section 63O-2-403;

(v) the Department of Transportation in accordance with Section 72-6-107.5;

and (vi) the Legislature's [Rules Review and General Oversight ] General Oversight Committee created in Section 36-35-102;

and (c) that establish:

(i) the requirements and procedures a contractor and a subcontractor shall follow to demonstrate compliance with this section, including:

(A) that a contractor or subcontractor's compliance with this section is subject to an audit by the department or the Office of the Legislative Auditor General;

(B) that a contractor that is subject to the requirements of this section shall obtain a written statement described in Subsection (5)(a);

and (C) that a subcontractor that is subject to the requirements of this section shall obtain a written statement described in Subsection (5)(c)(ii);

(ii) the penalties that may be imposed if a contractor or subcontractor intentionally violates the provisions of this section, which may include:

(A) a three-month suspension of the contractor or subcontractor from entering into future contracts with the state upon the first violation;

(B) a six-month suspension of the contractor or subcontractor from entering into future contracts with the state upon the second violation;

(C) an action for debarment of the contractor or subcontractor in accordance with Section 63G-6a-904 upon the third or subsequent violation;

and (D) notwithstanding Section 19-1-303, monetary penalties which may not exceed 50% of the amount necessary to purchase qualified health coverage for an employee and the dependents of an employee of the contractor or subcontractor who was not offered qualified health coverage during the duration of the contract;

and (iii) a website on which the department shall post the commercially equivalent benchmark, for the qualified health coverage identified in Subsection (1)(e), that is provided by the Department of Health and Human Services, in accordance with Subsection 26B-3-909(2).

- 8 - Enrolled Copy S.B.

148 (7)(a)(i) In addition to the penalties imposed under Subsection (6)(c)(ii), a contractor or subcontractor who intentionally violates the provisions of this section is liable to the employee for health care costs that would have been covered by qualified health coverage.

(ii) An employer has an affirmative defense to a cause of action under Subsection (7)(a)(i) if:

(A) the employer relied in good faith on a written statement described in Subsection (5)(a) or (5)(c)(ii);

or (B) the department determines that compliance with this section is not required under the provisions of Subsection (3).

(b) An employee has a private right of action only against the employee's employer to enforce the provisions of this Subsection (7).

(8) Any penalties imposed and collected under this section shall be deposited into the Medicaid Growth Reduction and Budget Stabilization Account created in Section 63J-1-315.

(9) The failure of a contractor or subcontractor to provide qualified health coverage as required by this section:

(a) may not be the basis for a protest or other action from a prospective bidder, offeror, or contractor under:

(i) Section 63G-6a-1602;

or (ii) any other provision in Title 63G, Chapter 6a, Utah Procurement Code;

and (b) may not be used by the procurement entity or a prospective bidder, offeror, or contractor as a basis for any action or suit that would suspend, disrupt, or terminate the design or construction.

(10) An administrator, including an administrator's actuary or underwriter, who provides a written statement under Subsection (5)(a) or (c) regarding the qualified health coverage of a contractor or subcontractor who provides a health benefit plan described in Subsection (1)(d)(ii):

(a) subject to Subsection (10)(b), is not liable for an error in the written statement, unless the administrator commits gross negligence in preparing the written statement;

(b) is not liable for any error in the written statement if the administrator relied in good faith on information from the contractor or subcontractor;

and (c) may require as a condition of providing the written statement that a contractor or subcontractor hold the administrator harmless for an action arising under this section.

- 9 - S.B.

148 Enrolled Copy Section 3.

Section 19-1-207 is amended to read:

19-1-207 (Effective 05/06/26).

Regulatory certainty to support economic recovery.

(1) On or before June 30, 2021, the Air Quality Board or the Water Quality Board may not make, amend, or repeal a rule related to air or water quality pursuant to this title, if formal rulemaking was not initiated on or before July 1, 2020, unless the rule constitutes:

(a) a state rule related to a federally-delegated program;

(b) a rule mandated by statute to be made, amended, or repealed on or before July 1, 2020;

or (c) subject to Subsection (2), a rule that is necessary because failure to make, amend, or repeal the rule will:

(i) cause an imminent peril to the public health, safety, or welfare;

(ii) cause an imminent budget reduction because of budget restraints or federal requirements;

(iii) place the agency in violation of federal or state law;

or (iv) fail to provide regulatory relief.

(2) In addition to complying with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the department shall report to the [Rules Review and General Oversight ] General Oversight Committee as to whether the need to act meets the requirements of Subsection (1)(c).

(3) On or after August 31, 2020, but on or before June 30, 2021, the Air Quality Board, Division of Air Quality, Water Quality Board, or Division of Water Quality may not impose a new fee or increase a fee related to air or water quality pursuant to this title or rules made under this title.

(4) Only the Legislature may extend the time limitations of this section.

(5) Notwithstanding the other provisions of this section, this section does not apply to a rule, fee, or fee increase to the extent that the rule, fee, or fee increase applies to an activity in a county of the first or second class.

(6) Notwithstanding the other provisions of this section, the agencies may engage with stakeholders in the process of discussing, developing, and drafting a rule, fee, or fee increase on or after July 1, 2020, but on or before June 30, 2021.

Section 4.

Section 19-5-104.5 is amended to read:

19-5-104.5 (Effective 05/06/26) (Repealed 07/01/29).

Legislative review and approval.

- 10 - Enrolled Copy S.B.

148 (1) Before sending a total maximum daily load and implementation strategy to the EPA for review and approval, the Water Quality Board shall submit the total maximum daily load:

(a) for review to the Natural Resources, Agriculture, and Environment Interim Committee if the total maximum daily load will require a public or private expenditure in excess of $10,000,000 but less than $100,000,000 for compliance;

or (b) for approval to the Legislature if the total maximum daily load will require a public or private expenditure of $100,000,000 or more.

(2)(a) As used in this Subsection (2):

(i) "Expenditure" means the act of expending funds:

(A) by an individual public facility with a Utah Pollutant Discharge Elimination System permit, or by a group of private agricultural facilities;

and (B) through an initial capital investment, or through operational costs over a three-year period.

(ii) "Utah Pollutant Discharge Elimination System" means the state permit system created in accordance with 33 U.S.C.

Sec.

1342.

(b) Before the board adopts a nitrogen or phosphorus rule or standard, the board shall submit the rule or standard as directed in Subsections (2)(c) and (d).

(c)(i) If compliance with the rule or standard requires an expenditure in excess of $250,000, but less than $10,000,000, the board shall submit the rule or standard for review to the Natural Resources, Agriculture, and Environment Interim Committee.

(ii)(A) Except as provided in Subsection (2)(c)(ii)(B), the Natural Resources, Agriculture, and Environment Interim Committee shall review a rule or standard the board submits under Subsection (2)(c)(i) during the Natural Resources, Agriculture, and Environment Interim Committee's committee meeting immediately following the day on which the board submits the rule or standard.

(B) If the committee meeting described in Subsection (2)(c)(ii)(A) is within five days after the day on which the board submits the rule or standard for review, the Natural Resources, Agriculture, and Environment Interim Committee shall review the rule or standard during the committee meeting described in Subsection (2)(c)(ii)(A) or during the committee meeting immediately following the committee meeting described in Subsection (2)(c)(ii)(A).

- 11 - S.B.

148 Enrolled Copy (d) If compliance with the rule or standard requires an expenditure of $10,000,000 or more, the board shall submit the rule or standard for approval to the Legislature.

(e)(i) A facility shall estimate the cost of compliance with a board-proposed rule or standard described in Subsection (2)(b) using:

(A) an independent, licensed engineer;

and (B) industry-accepted project cost estimate methods.

(ii) The board may evaluate and report on a compliance estimate described in Subsection (2)(e)(i).

(f) If there is a discrepancy in the estimated cost to comply with a rule or standard, the Office of the Legislative Fiscal Analyst shall determine the estimated cost to comply with the rule or standard.

(3) In reviewing a rule or standard, the Natural Resources, Agriculture, and Environment Interim Committee may:

(a) consider the impact of the rule or standard on:

(i) economic costs and benefit;

(ii) public health;

and (iii) the environment;

(b) suggest additional areas of consideration;

or (c) recommend the rule or standard to the board for:

(i) adoption;

or (ii) re-evaluation followed by further review by the Natural Resources, Agriculture, and Environment Interim Committee.

(4) When the Natural Resources, Agriculture, and Environment Interim Committee sets the review of a rule or standard submitted under Subsection (2)(c)(i) as an agenda item, the committee shall:

(a) before the review, directly inform the chairs of the [Rules Review and General Oversight ] General Oversight Committee of the coming review, including the date, time, and place of the review;

and (b) after the review, directly inform the chairs of the [Rules Review and General Oversight ] General Oversight Committee of the outcome of the review, including any recommendation.

Section 5.

Section 26B-1-219 is amended to read:

26B-1-219 (Effective 05/06/26).

Requirements for issuing, recommending, or facilitating rationing criteria.

- 12 - Enrolled Copy S.B.

148 (1) As used in this section:

(a) "Health care resource" means:

(i) health care as defined in Section 78B-3-403;

(ii) a prescription drug as defined in Section 58-17b-102;

(iii) a prescription device as defined in Section 58-17b-102;

(iv) a nonprescription drug as defined in Section 58-17b-102;

or (v) any supply or treatment that is intended for use in the course of providing health care as defined in Section 78B-3-403.

(b)(i) "Rationing criteria" means any requirement, guideline, process, or recommendation regarding:

(A) the distribution of a scarce health care resource;

or (B) qualifications or criteria for a person to receive a scarce health care resource.

(ii) "Rationing criteria" includes crisis standards of care with respect to any health care resource.

(c) "Scarce health care resource" means a health care resource:

(i) for which the need for the health care resource in the state or region significantly exceeds the available supply of that health care resource in that state or region;

(ii) that, based on the circumstances described in Subsection (1)(c)(i), is distributed or provided using written requirements, guidelines, processes, or recommendations as a factor in the decision to distribute or provide the health care resource;

and (iii) that the federal government has allocated to the state to distribute.

(2)(a) On or before July 1, 2022, the department shall make rules in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, to establish a procedure that the department will follow to adopt, modify, require, facilitate, or recommend rationing criteria.

(b) Beginning July 1, 2022, the department may not adopt, modify, require, facilitate, or recommend rationing criteria unless the department follows the procedure established by the department under Subsection (2)(a).

(3) The procedures developed by the department under Subsection (2) shall include, at a minimum:

(a) a requirement that the department notify the following individuals in writing before rationing criteria are issued, are recommended, or take effect:

(i) the [Rules Review and General Oversight ] General Oversight Committee created - 13 - S.B.

148 Enrolled Copy in Section 36-35-102;

(ii) the governor or the governor's designee;

(iii) the president of the Senate or the president's designee;

(iv) the speaker of the House of Representatives or the speaker's designee;

(v) the executive director or the executive director's designee;

and (vi) if rationing criteria affect hospitals in the state, a representative of an association representing hospitals throughout the state, as designated by the executive director;

and (b) procedures for an emergency circumstance which shall include, at a minimum:

(i) a description of the circumstances under which emergency procedures described in this Subsection (3)(b) may be used;

and (ii) a requirement that the department notify the individuals described in Subsections (3)(a)(i) through (vi) as soon as practicable, but no later than 48 hours after the rationing criteria take effect.

(4) The requirements described in this section and rules made under this section shall apply regardless of whether rationing criteria:

(a) have the force and effect of law, or is solely advisory, informative, or descriptive;

(b) are carried out or implemented directly or indirectly by the department or by other individuals or entities;

or (c) are developed solely by the department or in collaboration with other individuals or entities.

(5) This section:

(a) may not be suspended under Section 53-2a-209 or any other provision of state law relating to a state of emergency;

(b) does not limit a private entity from developing or implementing rationing criteria;

and (c) does not require the department to adopt, modify, require, facilitate, or recommend rationing criteria that the department does not determine to be necessary or appropriate.

(6) Subsection (2) does not apply to rationing criteria that are adopted, modified, required, facilitated, or recommended by the department:

(a) through the regular, non-emergency rulemaking procedure described in Section 63G-3-301;

(b) if the modification is solely to correct a technical error in rationing criteria such as correcting obvious errors and inconsistencies including those involving punctuation, - 14 - Enrolled Copy S.B.

148 capitalization, cross references, numbering, and wording;

(c) to the extent that compliance with this section would result in a direct violation of federal law;

(d) that are necessary for administration of the Medicaid program;

(e) if state law explicitly authorizes the department to engage in rulemaking to establish rationing criteria;

or (f) if rationing criteria are authorized directly through a general appropriation bill that is validly enacted.

Section 6.

Section 26B-3-129 is amended to read:

26B-3-129 (Effective 05/06/26).

Review of claims -- Audit and investigation procedures.

(1)(a) The department shall adopt administrative rules in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, and in consultation with providers and health care professionals subject to audit and investigation under the state Medicaid program, to establish procedures for audits and investigations that are fair and consistent with the duties of the department as the single state agency responsible for the administration of the Medicaid program under Section 26B-3-108 and Title XIX of the Social Security Act.

(b) If the providers and health care professionals do not agree with the rules proposed or adopted by the department under Subsection (1)(a), the providers or health care professionals may:

(i) request a hearing for the proposed administrative rule or seek any other remedies under the provisions of Title 63G, Chapter 3, Utah Administrative Rulemaking Act;

and (ii) request a review of the rule by the Legislature's [Rules Review and General Oversight ] General Oversight Committee created in Section 36-35-102.

(2) The department shall:

(a) notify and educate providers and health care professionals subject to audit and investigation under the Medicaid program of the providers' and health care professionals' responsibilities and rights under the administrative rules adopted by the department under the provisions of this section;

(b) ensure that the department, or any entity that contracts with the department to conduct audits:

(i) has on staff or contracts with a medical or dental professional who is experienced - 15 - S.B.

148 Enrolled Copy in the treatment, billing, and coding procedures used by the type of provider being audited;

and (ii) uses the services of the appropriate professional described in Subsection [(3)(b)(i)] (2)(b)(i) if the provider who is the subject of the audit disputes the findings of the audit;

(c) ensure that a finding of overpayment or underpayment to a provider is not based on extrapolation, as defined in Section 63A-13-102, unless:

(i) there is a determination that the level of payment error involving the provider exceeds a 10% error rate:

(A) for a sample of claims for a particular service code;

and (B) over a three year period of time;

(ii) documented education intervention has failed to correct the level of payment error;

and (iii) the value of the claims for the provider, in aggregate, exceeds $200,000 in reimbursement for a particular service code on an annual basis;

and (d) require that any entity with which the office contracts, for the purpose of conducting an audit of a service provider, shall be paid on a flat fee basis for identifying both overpayments and underpayments.

(3)(a) If the department, or a contractor on behalf of the department:

(i) intends to implement the use of extrapolation as a method of auditing claims, the department shall, prior to adopting the extrapolation method of auditing, report [its] the department's intent to use extrapolation to the Social Services Appropriations Subcommittee;

and (ii) determines Subsections (2)(c)(i) through (iii) are applicable to a provider, the department or the contractor may use extrapolation only for the service code associated with the findings under Subsections (2)(c)(i) through (iii).

(b)(i) If extrapolation is used under this section, a provider may, at the provider's option, appeal the results of the audit based on:

(A) each individual claim;

or (B) the extrapolation sample.

(ii) Nothing in this section limits a provider's right to appeal the audit under [Title 63G, General Government, ]Title 63G, Chapter 4, Administrative Procedures Act, the Medicaid program and its manual or rules, or other laws or rules that may provide remedies to providers.

- 16 - Enrolled Copy S.B.

148 Section 7.

Section 36-35-101 is amended to read:

36-35-101 (Effective 05/06/26).

Definitions.

As used in this chapter:

(1) "Abuse of authority" means an arbitrary or capricious exercise of power that:

(a) adversely affects the employment rights of another;

or (b) results in personal gain to the person exercising the authority or to another person.

(2) "Agency" means the same as that term is defined in Section 63G-3-102.

(3) "Agency rule" means the same as the term "rule" is defined in Section 63G-3-101.

[(2)] (4) "Committee" means the [Rules Review and General Oversight ] General Oversight Committee.

[(3)] (5) "Court Rule" means any of the following, whether existing, new, or proposed:

(a) rules of procedure, evidence, or practice for use of the courts of this state;

(b) rules governing and managing the appellate process adopted by the Supreme Court;

or (c) rules adopted by the Judicial Council for the administration of the courts of the state.

(6) "Gross mismanagement" means action or failure to act by a person, with respect to a person's responsibility, that causes significant harm or risk of harm to the mission of the public entity or public body that employs, or is managed or controlled by, the person.

[(4)] (7) "Judicial advisory committee" means the committee that proposes to the Supreme Court rules or changes in court rules related to:

(a) civil procedure;

(b) criminal procedure;

(c) juvenile procedure;

(d) appellate procedure;

(e) evidence;

(f) professional conduct;

and (g) the subject matter focus of any other committee that the Supreme Court establishes to propose rules or changes in court rules to the Supreme Court.

[(5)] (8) "Judicial council" means the administrative body of the courts, established in Utah Constitution, Article VIII, Section 12, and Section 78A-2-104.

(9) "Legislative issue" means any issue that could impact or inform legislation or potential legislation.

(10) "Matter subject to litigation" means any issue that is directly or indirectly:

(a) being litigated in a court;

or - 17 - S.B.

148 Enrolled Copy (b) likely to be litigated in a court.

(11) "Office" means the same as that term is defined in Section 63G-3-102.

[(6)] (12) "Proposal for court rule" means the proposed language in a court rule that is submitted to:

(a) the Judicial Council;

(b) the advisory committee;

or (c) the Supreme Court.

[(7)] (13) "Rule" means an agency rule or a court rule.

(14) "Unethical conduct" means conduct that violates a provision of Title 67, Chapter 16, Utah Public Officers' and Employees' Ethics Act.

(15) "Whistleblower complaint" means a complaint by a current or former agency employee that alleges the employee's employer or former employer is:

(a) wasting or misusing public funds, property, or manpower;

(b) violating or may be violating a law, rule, or regulation adopted under the law of this state, a political subdivision of this state, or any recognized entity of the United States;

or (c) engaging in:

(i) gross mismanagement;

(ii) abuse of authority;

or (iii) unethical conduct.

Section 8.

Section 36-35-102 is amended to read:

36-35-102 (Effective 05/06/26).

General Oversight Committee.

(1)(a) There is created [a Rules Review and General Oversight ] the General Oversight Committee consisting of the following [10] 13 permanent members:

(i) [five ] six members of the Senate appointed by the president of the Senate, no more than [three] four of whom may be from the same political party;

and (ii) [five ] seven members of the House of Representatives appointed by the speaker of the House of Representatives, no more than [three] five of whom may be from the same political party.

(b) Each permanent member shall serve[:] at the pleasure of the appointing officer.

[(i) for a two-year term;

or] [(ii) until the permanent member's successor is appointed.] (c)(i) A vacancy exists when a permanent member ceases to be a member of the Legislature, when removed by the appointing officer, or when a permanent - 18 - Enrolled Copy S.B.

148 member resigns from the committee.

(ii) When a vacancy exists:

(A) if the departing member is a member of the Senate, the president of the Senate shall appoint a member of the Senate to fill the vacancy;

or (B) if the departing member is a member of the House of Representatives, the speaker of the House of Representatives shall appoint a member of the House of Representatives to fill the vacancy.

[(iii) The newly appointed member shall serve the remainder of the departing member's unexpired term.] (d)(i) The president of the Senate shall designate a member of the Senate appointed under Subsection (1)(a)(i) as a cochair of the committee.

(ii) The speaker of the House of Representatives shall designate a member of the House of Representatives appointed under Subsection (1)(a)(ii) as a cochair of the committee.

(e) [Three ] Four representatives and three senators from the permanent members are a quorum for the transaction of business at any meeting.

(f)(i) Subject to Subsection (1)(f)(ii), the committee shall meet at least once each month to review new agency rules and court rules, amendments to existing agency rules and court rules, and repeals of existing agency rules and court rules.

(ii) The committee chairs may suspend the meeting requirement described in Subsection (1)(f)(i) at the committee chairs' discretion.

(2) The office shall submit a copy of each issue of the bulletin to the committee.

(3)(a) The committee shall:

(i) exercise continuous oversight of the administrative rulemaking process [under] described in Title 63G, Chapter 3, Utah Administrative Rulemaking Act[,] ;

and[ shall,] (ii) for each general session of the Legislature, request legislation that considers legislative reauthorization of agency rules as [provided under] described in Section 63G-3-502.

(b) The committee shall examine each agency rule, including any agency rule made according to the emergency rulemaking procedure described in Section 63G-3-304, submitted by an agency to determine:

(i) whether the agency rule is authorized by statute;

(ii) whether the agency rule complies with legislative intent;

- 19 - S.B.

148 Enrolled Copy (iii) the agency rule's impact on the economy and the government operations of the state and local political subdivisions;

(iv) the agency rule's impact on affected persons;

(v) the agency rule's total cost to entities regulated by the state;

(vi) the agency rule's benefit to the citizens of the state;

and (vii) whether adoption of the agency rule requires legislative review or approval.

(c) The committee may examine and review:

(i) any executive order, including an order issued [pursuant to] under Title 53, Chapter 2a, Part 2, Disaster Response and Recovery Act;

(ii) any public health order issued during a public health emergency declared in accordance with Title 26A, Local Health Authorities, or Title 26B, Utah Health and Human Services Code;

(iii) any agency action or policy that:

(A) affects a class of persons other than the agency;

or (B) is contrary to legislative intent;

(iv) in accordance with [Subsection (10),] Section 36-35-102.5:

(A) an individual child welfare case;

or [(v)] (B) [in accordance with Subsection (11), ]information from an agency that is subject to a confidentiality agreement[.] ;

or (v) any legislative issue.

(d) If the committee chooses to examine or review an order or policy described in Subsection (3)(c), the agency that issued the order or policy shall, upon request by the committee, provide to the committee:

(i) a copy of the order or policy;

and (ii) information related to the order or policy.

(e) The committee shall review court rules as provided in Section 36-35-103 and Section 36-35-104.

(f) The committee may close a meeting in accordance with Section 36-35-102.5.

(4)(a) To carry out the requirements of Subsection (3), the committee may examine any other issues that the committee considers necessary.

(b) Notwithstanding anything to the contrary in this section, the committee may not examine the internal policies, procedures, or practices of an agency or judicial branch entity.

(c) In reviewing a rule, the committee shall follow generally accepted principles of - 20 - Enrolled Copy S.B.

148 statutory construction.

(5) When the committee reviews an existing rule, the committee chairs:

(a) shall invite the Senate and House chairs of the standing committee and of the appropriation subcommittee that have jurisdiction over the agency or judicial branch entity whose existing rule is being reviewed to participate as nonvoting, ex officio members with the committee during the review of the rule;

and (b) may notify and refer the rule to the chairs of the interim committee that has jurisdiction over a particular agency or judicial branch entity when the committee determines that an issue involved in the rule may be more appropriately addressed by that committee.

(6) The committee may request that the Office of the Legislative Fiscal Analyst prepare a fiscal note on any rule or proposal for court rule.

(7) In order to accomplish the committee's functions described in this chapter, the committee has all the powers granted to legislative interim committees under Section 36-12-11.

(8)(a) The committee may prepare written findings of the committee's review of a rule, proposal for court rule, policy, practice, [or ]procedure, or legislative issue and may include any recommendation, including:

(i) legislative action;

(ii) action by a standing committee or interim committee;

(iii) agency rulemaking action;

(iv) Supreme Court rulemaking action;

or (v) Judicial Council rulemaking action.

(b) When the committee reviews a rule, the committee shall provide to the agency or judicial branch entity that enacted the rule:

(i) the committee's findings, if any;

and (ii) a request that the agency or judicial branch entity notify the committee of any changes the agency or judicial branch entity makes to the rule.

(c) The committee shall provide a copy of the committee's findings described in Subsection (8)(a), if any, to:

(i) any member of the Legislature, upon request;

(ii) any person affected by the rule, upon request;

(iii) the president of the Senate;

(iv) the speaker of the House of Representatives;

- 21 - S.B.

148 Enrolled Copy (v) the Senate and House chairs of the standing committee that has jurisdiction over the agency or judicial branch entity whose rule, policy, practice, or procedure is the subject of the finding;

(vi) the Senate and House chairs of the appropriation subcommittee that has jurisdiction over the agency or judicial branch entity that made the rule;

(vii) the governor;

and (viii) if the findings involve a court rule or judicial branch entity:

(A) the Judiciary Interim Committee;

(B) the Supreme Court;

and (C) the Judicial Council.

(9)(a)(i) The committee may submit a report on the committee's review under this section to each member of the Legislature at each regular session.

(ii) The report shall include:

(A) any finding or recommendation the committee made under Subsection (8);

(B) any action an agency, the Supreme Court, or the Judicial Council took in response to a committee recommendation;

and (C) any recommendation by the committee for legislation.

(b) If the committee receives a recommendation not to reauthorize an agency rule, as described in Subsection 63G-3-301(13)(b), and the committee recommends to the Legislature reauthorization of the agency rule, the committee shall submit a report to each member of the Legislature detailing the committee's decision.

(c) The committee may open a committee bill file to draft legislation by:

(i) committee vote;

or (ii) the House and Senate chairs agreeing to open a committee bill file if:

(A) the committee has voted to grant the chairs the ability to open committee bill files in the first meeting of the committee after the Legislature has adjourned sine die from the annual general session;

(d)(10) The(a) {Upon the unanimous vote of the committee, the committee may openauthorize the same} number{Office of committeethe billLegislative filesAuditor thatGeneral to conduct an interimaudit of an entity.} Upon a majority vote of the committee, the committee may openrecommend asthat describedthe inAudit legislativeSubcommittee rule.prioritize an audit of an issue heard by the committee.

(10){(b) UponThe committee may authorize only two audits in a majoritycalendar voteyear ofunder theSubsection committee,} the(10)(a).} committee{(c) mayThe recommendOffice thatof the AuditLegislative SubcommitteeAuditor prioritizeGeneral:} {(i) shall conduct an audit ofif authorized under Subsection (10)(a);} {(ii) may not expend more than 500 staff hours on an issueaudit hearddescribed byin theSubsection committee.} (10)(a);

and} {(iii) shall report to the committee at the conclusion of the audit approved under } {Subsection (10)(a).} [(10) Notwithstanding any other provision of this section, when reviewing and discussing -an 22individual -child Enrolledwelfare Copycase S.B.under Subsection (3)(c)(iv):] [(a) the committee:] - 1 -

148 an individual child welfare case under Subsection (3)(c)(iv):] [(a) the committee:] [(i) shall close the committee's meeting in accordance with Title 52, Chapter 4, Open and Public Meetings Act;] [(ii) shall make reasonable efforts to identify and consider the concerns of all parties to the case;

and] [(iii) may not make recommendations to the court, the division, or any other public or private entity regarding the disposition of an individual child welfare case;] [(b) a record of the committee regarding an individual child welfare case:] [(i) is classified as private under Section 63G-2-302;

and] [(ii) may be disclosed only in accordance with federal law and Title 63G, Chapter 2, Government Records Access and Management Act;

and] [(c) any documents received by the committee from the Division of Child and Family Services shall maintain the same classification under Title 63G, Chapter 2, Government Records Access and Management Act, that was designated by the Division of Child and Family Services.] [(11) Notwithstanding any other provision of this section, when reviewing information described in Subsection (3)(c)(v):] [(a) the committee shall close the committee's meeting in accordance with Title 52, Chapter 4, Open and Public Meetings Act;] [(b) a record of the committee regarding the information:] [(i) is classified as private under Section 63G-2-302;

and] [(ii) may be disclosed only in accordance with federal law and Title 63G, Chapter 2, Government Records Access and Management Act;

and] [(c) any documents received by the committee when reviewing the information shall maintain the same classification under Title 63G, Chapter 2, Government Records Access and Management Act, that was designated by the government entity.] Section 9.

Section 36-35-102.5 is enacted to read:

36-35-102.5 (Effective 05/06/26).

Closed meeting authorized.

(1) When reviewing and discussing an individual child welfare case:

(a) the committee:

(i) shall close the committee's meeting in accordance with Title 52, Chapter 4, Open and Public Meetings Act;

(ii) shall make reasonable efforts to identify and consider the concerns of all parties - 23 - S.B.

148 Enrolled Copy to the case;

and (iii) may not make recommendations to the court, the division, or any other public or private entity regarding the disposition of an individual child welfare case;

(b) a record of the committee regarding an individual child welfare case:

(i) is classified as private under Section 63G-2-302;

and (ii) may be disclosed only in accordance with federal law and Title 63G, Chapter 2, Government Records Access and Management Act;

and (c) any documents received by the committee from the Division of Child and Family Services shall maintain the same classification under Title 63G, Chapter 2, Government Records Access and Management Act, that was designated by the Division of Child and Family Services.

(2) When reviewing information subject to a confidentiality agreement:

(a) the committee shall close the committee's meeting in accordance with Title 52, Chapter 4, Open and Public Meetings Act;

(b) a record of the committee regarding the information:

(i) is classified as private under Section 63G-2-302;

and (ii) may be disclosed only in accordance with federal law and Title 63G, Chapter 2, Government Records Access and Management Act;

and (c) any documents received by the committee when reviewing the information shall maintain the same classification under Title 63G, Chapter 2, Government Records Access and Management Act, that was designated by the government entity providing the documents.

(3)(a) The committee may close a committee meeting in accordance with Title 52, Chapter 4, Open and Public Meetings Act, if the committee is reviewing a matter subject to litigation or a whistleblower complaint.

(b) If the meeting is closed under Subsection (3)(a):

(i) the record of the committee related to the matter subject to litigation or whistleblower complaint:

(A) is classified as private under Section 63G-2-302;

and (B) may be disclosed only in accordance with federal law and Title 63G, Chapter 2, Government Records Access and Management Act;

and (ii) any documents or materials received by the committee when reviewing the matter subject to litigation or whistleblower complaint shall:

(A) except as provided in Subsection (3)(b)(ii)(B), be classified as private;

or - 24 - Enrolled Copy S.B.

148 (B) maintain the same classification under Title 63G, Chapter 2, Government Records Access and Management Act, that was designated by a government entity providing the documents or materials.

Section 10.

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;

- 25 - S.B.

148 Enrolled Copy (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 - 26 - Enrolled Copy S.B.

148 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;