63J-1-504 - Fees -- Adoption, procedure, and approval -- Establishing and assessing fees without legislative approval.

63J-1-504. Fees -- Adoption, procedure, and approval -- Establishing and assessingfees without legislative approval.
(1) As used in this section:
(a) (i) "Agency" means each department, commission, board, council, agency, institution,officer, corporation, fund, division, office, committee, authority, laboratory, library, unit, bureau,panel, or other administrative unit of the state.
(ii) "Agency" does not mean the Legislature or its committees.
(b) "Fee agency" means any agency that is authorized to establish fees.
(c) "Fee schedule" means the complete list of fees charged by a fee agency and theamount of those fees.
(2) Each fee agency shall adopt a schedule of fees assessed for services provided by thefee agency that are:
(a) reasonable, fair, and reflect the cost of services provided; and
(b) established according to a cost formula determined by the director of the Governor'sOffice of Planning and Budget and the director of the Division of Finance in conjunction with theagency seeking to establish the fee.
(3) Except as provided in Subsection (6), a fee agency may not:
(a) set fees by rule; or
(b) create, change, or collect any fee unless the fee has been established according to theprocedures and requirements of this section.
(4) Each fee agency that is proposing a new fee or proposing to change a fee shall:
(a) present each proposed fee at a public hearing, subject to the requirements of Title 52,Chapter 4, Open and Public Meetings Act;
(b) increase, decrease, or affirm each proposed fee based on the results of the publichearing;
(c) except as provided in Subsection (6), submit the fee schedule to the Legislature aspart of the agency's annual appropriations request; and
(d) where necessary, modify the fee schedule to implement the Legislature's actions.
(5) (a) Each fee agency shall submit its fee schedule or special assessment amount to theLegislature for its approval on an annual basis.
(b) The Legislature may approve, increase or decrease and approve, or reject any feesubmitted to it by a fee agency.
(6) After conducting the public hearing required by this section, a fee agency mayestablish and assess fees without first obtaining legislative approval if:
(a) (i) the Legislature creates a new program that is to be funded by fees to be set by theLegislature;
(ii) the new program's effective date is before the Legislature's next annual generalsession; and
(iii) the fee agency submits the fee schedule for the new program to the Legislature for itsapproval at a special session, if allowed in the governor's call, or at the next annual generalsession of the Legislature, whichever is sooner;
(b) the Division of Occupational and Professional licensing makes a special assessmentagainst qualified beneficiaries under the Residence Lien Restriction and Lien Recovery Fund Actas provided in Subsection 38-11-206(1); or
(c) (i) the fee agency proposes to increase or decrease an existing fee for the purpose of

adding or removing a transactional fee that is charged or assessed by a non-governmental thirdparty but is included as part of the fee charged by the fee agency;
(ii) the amount of the increase or decrease in the fee is equal to the amount of thetransactional fee charged or assessed by the non-governmental third party; and
(iii) the increased or decreased fee is submitted to the Legislature for its approval at aspecial session, if allowed in the governor's call, or at the next annual session of the Legislature,whichever is sooner.
(7) (a) Each fee agency that wishes to change any fee shall submit to the governor as partof the agency's annual appropriation request a list that identifies:
(i) the title or purpose of the fee;
(ii) the present amount of the fee;
(iii) the proposed new amount of the fee;
(iv) the percent that the fee will have increased if the Legislature approves the higher fee;
(v) the estimated total annual revenue change that will result from the change in the fee;
(vi) the account or fund into which the fee will be deposited; and
(vii) the reason for the change in the fee.
(b) (i) The governor may review and approve, modify and approve, or reject the feeincreases.
(ii) The governor shall transmit the list required by Subsection (7)(a), with anymodifications, to the Legislative Fiscal Analyst with the governor's budget recommendations.
(c) Bills approving any fee change shall be filed before the beginning of the Legislature'sannual general session, if possible.

Amended by Chapter 146, 2010 General Session