HB 513

Enrolled Copy  H.B. 513
1Attorney General Funding Amendments
                                        2026 GENERAL SESSION
                                              STATE OF UTAH
                                     Chief Sponsor: Val L. Peterson
                                   Senate Sponsor: Michael K. McKell
2
3  LONG TITLE
4  General Description:
5      This bill addresses funding for the Office of the Attorney General.
6  Highlighted Provisions:
7      This bill:
8      ▸ exempts the Office of the Attorney General (office) from the provisions governing
9  internal service funds with respect to charges for legal services the office provides to an
10  agency;
11      ▸ provides that when the office charges an agency for legal services, the office shall
12  calculate the charge based on the actual time spent on the legal services;
13      ▸ requires the office and each agency to annually agree on a retainer amount to be included
14  in the governor's proposed budget that represents the total anticipated cost of the
15  agency's legal services for the upcoming fiscal year;
16      ▸ after the Legislature appropriates each agency's retainer, directs the office and each
17  agency to execute a service-level agreement that includes the agency's expected legal
18  services needs, the rates at which the office will charge for the legal services, and
19  specified information about the money used to pay for the legal services;
20      ▸ establishes the Legal Services Retainer Fund into which each agency will transfer the
21  agency's retainer;
22      ▸ allows the office to use money in the Legal Services Retainer Fund to pay for the legal
23  services that the office charges to each agency during the fiscal year;
24      ▸ requires an agency to use the agency's existing budget to pay for any legal services
25  charges that exceed the agency's balance in the Legal Services Retainer Fund;
26      ▸ creates the Legal Services and Litigation Program to pay costs of defending the state in
27  civil litigation that meets specified criteria;
H.B. 513  Enrolled Copy
28▸ provides that appropriations made to the Legal Services and Litigation Program are
29   nonlapsing; and
30▸ makes technical and conforming changes.
31   Money Appropriated in this Bill:
32None
33   Other Special Clauses:
34None
35   Utah Code Sections Affected:
36   AMENDS:
3752-4-205 (Effective 05/06/26), as last amended by Laws of Utah 2025, Chapter 391
3863J-1-410 (Effective 05/06/26), as last amended by Laws of Utah 2025, Chapters 350,
39357
4063J-1-602.2 (Effective 05/06/26) (Partially Repealed 07/01/29), as last amended by Laws
41of Utah 2025, First Special Session, Chapter 17
42   ENACTS:
4363J-1-1001 (Effective 05/06/26), Utah Code Annotated 1953
4463J-1-1002 (Effective 05/06/26), Utah Code Annotated 1953
4563J-1-1003 (Effective 05/06/26), Utah Code Annotated 1953
4663J-1-1004 (Effective 05/06/26), Utah Code Annotated 1953
4763J-1-1005 (Effective 05/06/26), Utah Code Annotated 1953
48
49   Be it enacted by the Legislature of the state of Utah:
50Section 1. Section 52-4-205 is amended to read:
5152-4-205 (Effective 05/06/26). Purposes of closed meetings -- Certain issues
52   prohibited in closed meetings.
53   (1) A closed meeting described under Section 52-4-204 may only be held for:
54(a) except as provided in Subsection (3), discussion of the character, professional
55competence, or physical or mental health of an individual;
56(b) strategy sessions to discuss collective bargaining;
57(c) strategy sessions to discuss pending or reasonably imminent litigation;
58(d) strategy sessions to discuss the purchase, exchange, or lease of real property,
59including any form of a water right or water shares, or to discuss a proposed
60development agreement, project proposal, or financing proposal related to the
61development of land owned by the state or a political subdivision, if public
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62discussion would:
63(i) disclose the appraisal or estimated value of the property under consideration; or
64(ii) prevent the public body from completing the transaction on the best possible
65terms;
66      (e) strategy sessions to discuss the sale of real property, including any form of a water
67right or water shares, if:
68(i) public discussion of the transaction would:
69(A) disclose the appraisal or estimated value of the property under consideration;
70or
71(B) prevent the public body from completing the transaction on the best possible
72terms;
73(ii) the public body previously gave public notice that the property would be offered
74for sale; and
75(iii) the terms of the sale are publicly disclosed before the public body approves the
76sale;
77      (f) discussion regarding deployment of security personnel, devices, or systems;
78      (g) investigative proceedings regarding allegations of criminal misconduct;
79      (h) as relates to the Independent Legislative Ethics Commission, conducting business
80relating to the receipt or review of ethics complaints;
81      (i) as relates to an ethics committee of the Legislature, a purpose permitted under
82Section 52-4-204;
83      (j) as relates to the Independent Executive Branch Ethics Commission created in Section
8463A-14-202, conducting business relating to an ethics complaint;
85      (k) as relates to a county legislative body, discussing commercial information as defined
86in Section 59-1-404;
87      (l) as relates to the Utah Higher Education Savings Board of Trustees and its appointed
88board of directors, discussing fiduciary or commercial information;
89      (m) deliberations, not including any information gathering activities, of a public body
90acting in the capacity of:
91(i) an evaluation committee under Title 63G, Chapter 6a, Utah Procurement Code,
92during the process of evaluating responses to a solicitation, as defined in Section
9363G-6a-103;
94(ii) a protest officer, defined in Section 63G-6a-103, during the process of making a
95decision on a protest under Title 63G, Chapter 6a, Part 16, Protests; or
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96(iii) a procurement appeals panel under Title 63G, Chapter 6a, Utah Procurement
97Code, during the process of deciding an appeal under Title 63G, Chapter 6a, Part
9817, Procurement Appeals Board;
99      (n) the purpose of considering information that is designated as a trade secret, as defined
100in Section 13-24-2, if the public body's consideration of the information is necessary
101to properly conduct a procurement under Title 63G, Chapter 6a, Utah Procurement
102Code;
103      (o) the purpose of discussing information provided to the public body during the
104procurement process under Title 63G, Chapter 6a, Utah Procurement Code, if, at the
105time of the meeting:
106(i) the information may not, under Title 63G, Chapter 6a, Utah Procurement Code, be
107disclosed to a member of the public or to a participant in the procurement process;
108and
109(ii) the public body needs to review or discuss the information to properly fulfill its
110role and responsibilities in the procurement process;
111      (p) as relates to the governing board of a governmental nonprofit corporation, as that
112term is defined in Section 11-13a-102, the purpose of discussing information that is
113designated as a trade secret, as that term is defined in Section 13-24-2, if:
114(i) public knowledge of the discussion would reasonably be expected to result in
115injury to the owner of the trade secret; and
116(ii) discussion of the information is necessary for the governing board to properly
117discharge the board's duties and conduct the board's business;
118      (q) as it relates to the Cannabis Production Establishment Licensing Advisory Board, to
119review confidential information regarding violations and security requirements in
120relation to the operation of cannabis production establishments;
121      (r) considering a loan application, if public discussion of the loan application would
122disclose:
123(i) nonpublic personal financial information; or
124(ii) a nonpublic trade secret, as defined in Section 13-24-2, or nonpublic business
125financial information the disclosure of which would reasonably be expected to
126result in unfair competitive injury to the person submitting the information;
127      (s) a discussion of the board of the Point of the Mountain State Land Authority, created
128in Section 11-59-201, regarding a potential tenant of point of the mountain state land,
129as defined in Section 11-59-102; or
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130      (t) a purpose for which a meeting is required to be closed under Subsection (2).
131  (2) The following meetings shall be closed:
132      (a) a meeting of the Health and Human Services Interim Committee to review a report
133described in Subsection 26B-1-506(1)(a), and a response to the report described in
134Subsection 26B-1-506(2);
135      (b) a meeting of the Child Welfare Legislative Oversight Panel to:
136(i) review a report described in Subsection 26B-1-506(1)(a), and a response to the
137report described in Subsection 26B-1-506(2); or
138(ii) review and discuss an individual case, as described in Section 36-33-103;
139      (c) a meeting of a conservation district as defined in Section 17D-3-102 for the purpose
140of advising the Natural Resource Conservation Service of the United States
141Department of Agriculture on a farm improvement project if the discussed
142information is protected information under federal law;
143      (d) a meeting of the Compassionate Use Board established in Section 26B-1-421 for the
144purpose of reviewing petitions for a medical cannabis card in accordance with
145Section 26B-1-421;
146      (e) a meeting of the Colorado River Authority of Utah if:
147(i) the purpose of the meeting is to discuss an interstate claim to the use of the water
148in the Colorado River system; and
149(ii) failing to close the meeting would:
150(A) reveal the contents of a record classified as protected under Subsection
15163G-2-305(81);
152(B) reveal a legal strategy relating to the state's claim to the use of the water in the
153Colorado River system;
154(C) harm the ability of the Colorado River Authority of Utah or river
155commissioner to negotiate the best terms and conditions regarding the use of
156water in the Colorado River system; or
157(D) give an advantage to another state or to the federal government in negotiations
158regarding the use of water in the Colorado River system;
159      (f) a meeting of the General Regulatory Sandbox Program Advisory Committee if:
160(i) the purpose of the meeting is to discuss an application for participation in the
161regulatory sandbox as defined in Section 63N-16-102; and
162(ii) failing to close the meeting would reveal the contents of a record classified as
163protected under Subsection 63G-2-305(82);
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164(g) a meeting of a project entity if:
165(i) the purpose of the meeting is to conduct a strategy session to discuss market
166conditions relevant to a business decision regarding the value of a project entity
167asset if the terms of the business decision are publicly disclosed before the
168decision is finalized and a public discussion would:
169(A) disclose the appraisal or estimated value of the project entity asset under
170consideration; or
171(B) prevent the project entity from completing on the best possible terms a
172contemplated transaction concerning the project entity asset;
173(ii) the purpose of the meeting is to discuss a record, the disclosure of which could
174cause commercial injury to, or confer a competitive advantage upon a potential or
175actual competitor of, the project entity;
176(iii) the purpose of the meeting is to discuss a business decision, the disclosure of
177which could cause commercial injury to, or confer a competitive advantage upon a
178potential or actual competitor of, the project entity; or
179(iv) failing to close the meeting would prevent the project entity from getting the best
180price on the market;[ and]
181(h) a meeting of the Rules Review and General Oversight Committee to review and
182discuss:
183(i) an individual child welfare case as described in Subsection 36-35-102(3)(c); or
184(ii) information that is subject to a confidentiality agreement as described in
185Subsection [36-35-102(3)(c).] 36-35-102(3)(c); and
186(i) a meeting of the Legislative Management Committee to discuss a notice from the
187Office of the Attorney General provided in accordance with Section 63J-1-1005.
188   (3) In a closed meeting, a public body may not:
189(a) interview a person applying to fill an elected position;
190(b) discuss filling a midterm vacancy or temporary absence governed by Title 20A,
191Chapter 1, Part 5, Candidate Vacancy and Vacancy and Temporary Absence in
192Elected Office; or
193(c) discuss the character, professional competence, or physical or mental health of the
194person whose name was submitted for consideration to fill a midterm vacancy or
195temporary absence governed by Title 20A, Chapter 1, Part 5, Candidate Vacancy and
196Vacancy and Temporary Absence in Elected Office.
197Section 2. Section 63J-1-410 is amended to read:
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19863J-1-410 (Effective 05/06/26). Internal service funds -- Governance and review.
199  (1) For purposes of this section:
200      (a) "Agency" means a department, division, office, bureau, or other unit of state
201government, and includes any subdivision of an agency.
202      (b) "Do not replace vehicles" means a vehicle accounted for in the Division of Fleet
203Operations for which charges to an agency for its use do not include amounts to
204cover depreciation or to accumulate assets to replace the vehicle at the end of its
205useful life.
206      (c) "Internal service fund agency" means an agency that provides goods or services to
207other agencies of state government or to other governmental units on a capital
208maintenance and cost reimbursement basis, and which recovers costs through
209interagency billings.
210      (d) "Revolving loan fund" means each of the revolving loan funds defined in Section
21163A-3-205.
212  (2) An internal service fund agency is not subject to this section with respect to its
213      administration of a revolving loan fund.
214  (3)(a) An internal service fund agency may not bill another agency for services that it
215      provides for each internal service fund operated by the agency, unless the Legislature
216      has:
217(i) reviewed and approved each internal service fund's budget request;
218(ii) reviewed and approved each internal service fund's rates, fees, and other amounts
219that it charges those who use its services and included those rates, fees, and
220amounts in an appropriation act;
221(iii) approved the number of full-time positions of each internal service fund as part
222of the annual appropriation process;
223(iv) reviewed the number of full-time equivalent contract employees of each internal
224service fund as part of the annual appropriation process; and
225(v) appropriated to the internal service fund agency each internal service fund's
226estimated revenue based upon the rates and fee structure that are the basis for the
227estimate.
228      (b) If an internal service fund agency operates more than one internal service fund
229within the internal service fund agency, the internal service fund agency shall comply
230with the review and approval requirements under Subsection (3)(a) for each internal
231service fund.
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232(c) If an internal service fund agency operates an internal service fund and does not get
233the approvals required under Subsection (3)(a) or (4)(c), the internal service fund
234agency shall rebate all rates, fees, and amounts collected to those who use the
235services for the rates, fees, and amounts collected that were not approved under
236Subsection (3)(a) or (4)(c).
237   (4)(a) An internal service fund agency may charge a rate, fee, or other amount that is
238less than the rate, fee, or other amount established by the Legislature in an
239appropriations act if the internal service fund agency first reports to the Governor's
240Office of Planning and Budget and the Office of the Legislative Fiscal Analyst the
241internal service fund agency's justification for reducing the rate, fee, or other amount.
242(b) Except as provided in Subsections (4)(c) and (d), an internal service fund agency
243may not charge rates, fees, and other amounts that exceed the rates, fees, and
244amounts approved by the Legislature in an appropriations act.
245(c)(i) An internal service fund agency that begins a new service or introduces a new
246product between annual general sessions of the Legislature may, for that service
247or product:
248(A) establish and charge an interim rate or amount;
249(B) acquire contract employees, if necessary; or
250(C) do a combination of Subsections (4)(c)(i)(A) and (B).
251(ii) The internal service fund agency shall:
252(A) submit the interim rate or amount under Subsection (4)(c)(i) to the Legislature
253for approval at the next annual general session; and
254(B) report any change in the number of contract employees under Subsection
255(4)(c)(i) to the appropriate legislative appropriations subcommittee for review.
256(d) An internal service fund agency may, in a fiscal year, charge rates, fees, and other
257amounts that exceed the rates, fees, or amounts approved by the Legislature in an
258appropriations act, if:
259(i) during the immediately preceding annual general session, the Legislature
260appropriates money to each state agency to pay for an increase in the state
261agency's employee's compensation;
262(ii) within 90 days after the day on which the Legislature adjourns the general session
263sine die, the internal service fund agency submits a proposed increased rate
264schedule to the rate committee established in Section 63A-1-114 that adjusts the
265rates, fees, and amounts approved by the Legislature to reflect the percentage
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266increase that the Legislature appropriated for state agency employee compensation
267under Subsection (4)(d)(i);
268(iii) the rate committee approves the proposed increased rate schedule described in
269Subsection (4)(d)(ii) during the meeting described in Subsection 63A-1-114(4);
270and
271(iv) the internal service fund agency uses all the revenue from the rate schedule
272increase under this Subsection (4)(d) to increase the internal service fund agency's
273employee's compensation in an amount equivalent to the state agency employee
274compensation increase described in Subsection (4)(d)(i).
275  (5) The internal service fund agency budget request shall separately identify the capital
276      needs and the related capital budget.
277  (6) In the fiscal year that the accounting change referred to in Subsection 51-5-6(2) is
278      implemented by the Division of Finance, the Division of Finance shall transfer equity
279      created by that accounting change to any internal service fund agency up to the amount
280      needed to eliminate any long-term debt and deficit working capital in the fund.
281  (7) No new internal service fund agency may be established unless reviewed and approved
282      by the Legislature.
283  (8)(a) Except as provided in Subsection (8)(f), an internal service fund agency may not
284      acquire capital assets unless legislative approval for acquisition of the assets has been
285      included in an appropriations act for the internal service fund agency.
286      (b) An internal service fund agency may not acquire capital assets after the transfer
287mandated by Subsection (6) has occurred unless the internal service fund agency has
288adequate working capital.
289      (c) The internal service fund agency shall provide working capital from the following
290sources in the following order:
291(i) first, from operating revenues to the extent allowed by state rules and federal
292regulations;
293(ii) second, from long-term debt, subject to the restrictions of this section; and
294(iii) last, from an appropriation.
295      (d)(i) To eliminate negative working capital, an internal service fund agency may
296incur long-term debt from the General Fund or Special Revenue Funds to acquire
297capital assets.
298(ii) The internal service fund agency shall repay all long-term debt borrowed from the
299General Fund or Special Revenue Funds by making regular payments over the
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300useful life of the asset according to the asset's depreciation schedule.
301(e)(i) The Division of Finance may not allow an internal service fund agency's
302borrowing to exceed 90% of the net book value of the agency's capital assets as of
303the end of the fiscal year.
304(ii) If an internal service fund agency wishes to purchase authorized assets or enter
305into equipment leases that would increase its borrowing beyond 90% of the net
306book value of the agency's capital assets, the agency may purchase those assets
307only with money appropriated from another fund, such as the General Fund or a
308special revenue fund.
309(f)(i) Except as provided in Subsection (8)(f)(ii), capital assets acquired through
310agency appropriation may not be transferred to any internal service fund agency
311without legislative approval.
312(ii) Vehicles acquired by agencies from appropriated funds or money appropriated to
313agencies to be used for vehicle purchases may be transferred to the Division of
314Fleet Operations and, when transferred, become part of the Fleet Operations
315Internal Service Fund.
316(iii) Vehicles acquired with funding from sources other than state appropriations or
317acquired through the federal surplus property donation program may be
318transferred to the Division of Fleet Operations and, when transferred, become part
319of the Fleet Operations Internal Service Fund.
320(iv) Unless otherwise approved by the Legislature, vehicles acquired under
321Subsection (8)(f)(iii) shall be accounted for as "do not replace" vehicles.
322   (9) The Division of Finance shall adopt policies and procedures related to the accounting
323for assets, liabilities, equity, revenues, expenditures, and transfers of internal service
324funds agencies.
325   (10) Beginning July 1, 2027, this part does not apply to charges that are:
326(a) for legal services provided by the Office of the Attorney General; and
327(b) governed by Title 63J, Chapter 1, Part 10, Funding for Attorney General Services.
328Section 3. Section 63J-1-602.2 is amended to read:
32963J-1-602.2 (Effective 05/06/26) (Partially Repealed 07/01/29). List of nonlapsing
330   appropriations to programs.
331      Appropriations made to the following programs are nonlapsing:
332   (1) The Legislature and the Legislature's committees.
333   (2) The State Board of Education, including all appropriations to agencies, line items, and
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334      programs under the jurisdiction of the State Board of Education, in accordance with
335      Section 53F-9-103.
336  (3) The Rangeland Improvement Act created in Section 4-20-101.
337  (4) The Percent-for-Art Program created in Section 9-6-404.
338  (5) The LeRay McAllister Working Farm and Ranch Fund Program created in Title 4,
339      Chapter 46, Part 3, LeRay McAllister Working Farm and Ranch Fund.
340  (6) The Utah Lake Authority created in Section 11-65-201.
341  (7) Dedicated credits accrued to the Utah Marriage Commission as provided under
342      Subsection 17-66-303(2)(d)(ii).
343  (8) The Wildlife Land and Water Acquisition Program created in Section 23A-6-205.
344  (9) Sanctions collected as dedicated credits from Medicaid providers under Subsection
345      26B-3-108(7).
346  (10) The primary care grant program created in Section 26B-4-310.
347  (11) The Opiate Overdose Outreach Pilot Program created in Section 26B-4-512.
348  (12) The Utah Health Care Workforce Financial Assistance Program created in Section
349      26B-4-702.
350  (13) The Rural Physician Loan Repayment Program created in Section 26B-4-703.
351  (14) The Utah Medical Education Council for the:
352      (a) administration of the Utah Medical Education Program created in Section 26B-4-707;
353      (b) provision of medical residency grants described in Section 26B-4-711; and
354      (c) provision of the forensic psychiatric fellowship grant described in Section 26B-4-712.
355  (15) The Division of Services for People with Disabilities, as provided in Section 26B-6-402.
356  (16) The Communication Habits to reduce Adolescent Threats (CHAT) Pilot Program
357      created in Section 26B-7-122.
358  (17) Funds that the Department of Alcoholic Beverage Services retains in accordance with
359      Subsection 32B-2-301(8)(a) or (b).
360  (18) The General Assistance program administered by the Department of Workforce
361      Services, as provided in Section 35A-3-401.
362  (19) The Utah National Guard, created in Title 39A, National Guard and Militia Act.
363  (20) The Search and Rescue Financial Assistance Program, as provided in Section
364      53-2a-1102.
365  (21) The Emergency Medical Services Grant Program, as provided in Section 53-2d-207.
366  (22) The Motorcycle Rider Education Program, as provided in Section 53-3-905.
367  (23) The Utah Board of Higher Education for teacher preparation programs, as provided in
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368Section 53H-5-402.
369   (24) Innovation grants under Section 53G-10-608, except as provided in Subsection
37053G-10-608(3).
371   (25) The Division of Fleet Operations for the purpose of upgrading underground storage
372tanks under Section 63A-9-401.
373   (26) The Division of Technology Services for technology innovation as provided under
374Section 63A-16-903.
375   (27) The State Capitol Preservation Board created by Section 63O-2-201.
376   (28) The Office of Administrative Rules for publishing, as provided in Section 63G-3-402.
377   (29) The Colorado River Authority of Utah, created in Title 63M, Chapter 14, Colorado
378River Authority of Utah Act.
379   (30) The Governor's Office of Economic Opportunity to fund the Enterprise Zone Act, as
380provided in Title 63N, Chapter 2, Part 2, Enterprise Zone Act.
381   (31) The Governor's Office of Economic Opportunity's Rural Employment Expansion
382Program, as described in Title 63N, Chapter 4, Part 4, Rural Employment Expansion
383Program.
384   (32) County correctional facility contracting program for state inmates as described in
385Section 64-13e-103.
386   (33) County correctional facility reimbursement program for state probationary inmates and
387state parole inmates as described in Section 64-13e-104.
388   (34) Programs for the Jordan River Recreation Area as described in Section 65A-2-8.
389   (35) The Division of Human Resource Management user training program, as provided in
390Section 63A-17-106.
391   (36) A public safety answering point's emergency telecommunications service fund, as
392provided in Section 69-2-301.
393   (37) The Traffic Noise Abatement Program created in Section 72-6-112.
394   (38) The money appropriated from the Navajo Water Rights Negotiation Account to the
395Division of Water Rights, created in Section 73-2-1.1, for purposes of participating in a
396settlement of federal reserved water right claims.
397   (39) The Judicial Council for compensation for special prosecutors, as provided in Section
39877-10a-19.
399   (40) A state rehabilitative employment program, as provided in Section 78A-6-210.
400   (41) The Utah Geological Survey, as provided in Section 79-3-401.
401   (42) The Bonneville Shoreline Trail Program created under Section 79-5-503.
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402  (43) Adoption document access as provided in Sections 81-13-103, 81-13-504, and
403      81-13-505.
404  (44) Indigent defense as provided in Title 78B, Chapter 22, Part 4, Utah Indigent Defense
405      Commission.
406  (45) The program established by the Division of Facilities Construction and Management
407      under Section 63A-5b-703 under which state agencies receive an appropriation and pay
408      lease payments for the use and occupancy of buildings owned by the Division of
409      Facilities Construction and Management.
410  (46) The State Tax Commission for reimbursing counties for deferrals in accordance with
411      Section 59-2-1802.5.
412  (47) The Veterinarian Education Loan Repayment Program created in Section 4-2-902.
413  (48) The Legal Services and Litigation Program created in Section 63J-1-1005.
414Section 4. Section 63J-1-1001 is enacted to read:
415Part 10. Funding for Attorney General Services
41663J-1-1001 (Effective 05/06/26). Definitions.
417  (1) "Agency" means an agency as defined in Section 63J-1-102 that receives legal services
418      from the office.
419  (2) "Biller" means an attorney or a paralegal who provides legal services to an agency on
420      the office's behalf.
421  (3) "Legal services" means any form of legal advice or legal representation that is subject to
422      the laws of the state.
423  (4) "Office" means the Office of the Attorney General.
424  (5) "Retainer" means the total amount an agency expects to expend during a fiscal year on
425      legal services provided by the office.
426  (6) "Rate category" means a segment of billers defined by the office for whom the office
427      charges the same hourly rate when providing legal services to an agency.
428  (7) "Service-level agreement" means the written agreement described in Section 63J-1-1002.
429Section 5. Section 63J-1-1002 is enacted to read:
43063J-1-1002 (Effective 05/06/26). Annual retainer -- Service-level agreements.
431  (1)(a) Beginning July 1, 2027, in accordance with this part, the office shall invoice each
432      agency for legal services the office provides.
433      (b) The office shall calculate the amount the office invoices based on:
434(i) the actual time expended by a biller, recorded in increments of no greater than
435fifteen minutes; and
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436(ii) an hourly rate the office establishes for the biller's rate category.
437(c) The office shall ensure that the hourly rate the office establishes for a rate category
438reflects the total compensation of billers in the rate category, plus a reasonable
439overhead allocation.
440   (2)(a) Before October 1 each year:
441(i) the office and each agency that requires legal services from the office during the
442upcoming fiscal year shall jointly agree to a retainer for the upcoming fiscal year;
443and
444(ii) each agency shall report to the Governor's Office of Planning and Budget the
445agency's retainer for the upcoming fiscal year.
446(b) The governor shall account for each retainer in the proposed budget the governor
447submits in accordance with Section 63J-1-201.
448   (3) After the general session during which the Legislature considers the amounts for
449retainers included in the governor's budget under Subsection (2) and before the start of
450the fiscal year, the office and each agency shall enter into a written service-level
451agreement that establishes for the upcoming fiscal year:
452(a) the legal services the agency anticipates needing;
453(b) for each rate category, the estimated number of hours necessary to perform the legal
454services described in Subsection (3)(a);
455(c) the hourly rate for each rate category;
456(d)(i) the amount the Legislature appropriated for the agency's retainer; or
457(ii) if the office and agency determine that the amount appropriated for the agency's
458retainer exceeds the amount the agency expects to expend on legal services under
459the service-level agreement, the revised retainer;
460(e) the source of funding the agency will use to pay for the cost of any legal services
461from the office that exceeds the retainer described in Subsection (3)(d);
462(f) processes and controls the office will use to track the agency's retainer; and
463(g) how the agency will allocate available funds, including federal funds and restricted
464funds, to pay for legal services covered by or exceeding the appropriated retainer.
465   (4) On July 1 following execution of the service-level agreement, each agency shall transfer
466into the Legal Services Retainer Fund created in Section 63J-1-1004 an amount
467sufficient to ensure the amount available in the Legal Services Retainer Fund for the
468agency's legal services is equal to the retainer included in the service-level agreement
469under Subsection (3)(d).
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470Section 6. Section 63J-1-1003 is enacted to read:
47163J-1-1003 (Effective 05/06/26). Billing.
472  (1)(a) The office shall provide each agency with a monthly billing report that accounts
473      for all legal services the office provided the agency during the immediately preceding
474      calendar month.
475      (b) The office shall include in each billing report:
476(i) an itemized accounting of the time spent on each matter for the agency;
477(ii) the total amount charged to the agency during the reporting period;
478(iii) the cumulative amount charged to the agency for the fiscal year to date; and
479(iv) the remaining balance of the agency's retainer.
480  (2)(a) In accordance with Section 63J-1-1004, the office shall use the agency's retainer
481      to satisfy the office's monthly charges to the agency for legal services.
482      (b) If the remainder of an agency's retainer is insufficient to satisfy the office's monthly
483charges to the agency, the agency shall pay the remaining balance using the funding
484source identified in the service-level agreement.
485      (c) The office may not use an agency's retainer to pay charges incurred by another
486agency.
487  (3) For each agency under the governor's authority, the office shall provide a monthly
488      report to the Governor's Office of Planning and Budget that includes the information
489      described in Subsections (1)(b)(ii) through (iv).
490Section 7. Section 63J-1-1004 is enacted to read:
49163J-1-1004 (Effective 05/06/26). Legal Services Retainer Fund.
492  (1) There is created an expendable special revenue fund known as the Legal Services
493      Retainer Fund.
494  (2) The fund consists of transfers from agencies to pay for the office's legal services,
495      including retainers transferred into the account in accordance with Section 63J-1-1002.
496  (3)(a) The office shall administer the fund and may expend money from the fund as
497      provided in this part to pay for amounts the office charges an agency for legal
498      services.
499      (b) As provided in Section 63J-1-1003, the office may not use an agency's retainer to
500pay charges incurred by another agency.
501Section 8. Section 63J-1-1005 is enacted to read:
50263J-1-1005 (Effective 05/06/26). Legal Services and Litigation Program.
503  (1) There is created within the office the Legal Services and Litigation Program to be
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504funded by appropriations made by the Legislature.
505   (2) Subject to the provisions of this section, the office shall administer the program for the
506purpose of representing the state in civil litigation that:
507(a) challenges the constitutionality of a state statute or other legislative enactment;
508(b) involves a matter of statewide importance; or
509(c) is not paid for through the Risk Management Fund created in Section 63A-4-201.
510   (3) The office may expend funds from the program to pay for a matter described in
511Subsection (2):
512(a) upon the attorney general's determination that the matter satisfies the criteria
513described in Subsection (2); and
514(b)(i) if the office anticipates the office's total costs related to the matter will be more
515than $100,000 but less than $500,000, after providing notice to:
516(A) the president of the Senate and the speaker of the House of Representatives;
517and
518(B) if the matter involves an agency under the governor's authority, the governor;
519or
520(ii) if the office anticipates the office's total costs related to the matter will exceed
521$500,000, after providing notice to:
522(A) the Legislative Management Committee; and
523(B) if the matter involves an agency under the governor's authority, the governor.
524Section 9. Effective Date.
525   This bill takes effect on May 6, 2026.
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