Bill Summary – FastDemocracy

LEGISLATIVE GENERAL COUNSEL                                           H.B. 230
Approved for Filing: P. Owen 6                                   st
                                                                       1 Sub. (Buff)
          6 02-02-24 9:07 AM 6
                   Representative Thomas W. Peterson proposes the following substitute bill:
           STATE AGENCY APPLICATION REVIEW REQUIREMENTS
                                      2024 GENERAL SESSION
                                          STATE OF UTAH
                              Chief Sponsor: Thomas W. Peterson
                                 Senate Sponsor: Evan J. Vickers
 6
 LONG TITLE
 General Description:
        This bill addresses procedures for a state agency to act on a request for agency action.
 Highlighted Provisions:
        This bill:
        < defines terms;
        < requires for specified agencies that the agency respond within a specified time
 period to a request for agency action;
        < addresses for specified agencies the procedures for determining that a request for
 agency action is complete;
        < clarifies how other statutes apply;
        < addresses federal preemption;
        < provides that sections are to be interpreted to benefit a person seeking agency
 action; and                                                                                       1 stSub. H.B. 230
        < addresses effect of noncompliance.
 Money Appropriated in this Bill:
        None
 Other Special Clauses:
        None
     *HB0230S01*
       1st Sub. (Buff) H.B. 230                                                  02-02-24 9:07 AM
 Utah Code Sections Affected:
 ENACTS:
        13-1-19, Utah Code Annotated 1953
        19-1-309, Utah Code Annotated 1953
        79-1-105, Utah Code Annotated 1953
31
 Be it enacted by the Legislature of the state of Utah:
        Section 1. Section 13-1-19 is enacted to read:
        13-1-19. Timing of department agency action.
        (1) As used in this section:
        (a) "Agency" means the department or an agency, division, board, office, or other
 subpart of the department.
        (b) (i) "Agency action" means a paper-based or electronic action that grants authority to
 engage in a specified activity under an applicable statute or a rule made under an applicable
 statute, including:
        (A) a permit;
        (B) a plan;
        (C) a license;
        (D) a registration;
        (E) a certificate;
        (F) an approval order; or
        (G) another administrative authorization made under an applicable statute.
        (ii) Notwithstanding Subsection (1)(b)(i), "agency action" does not include:
        (A) responding to a complaint;
        (B) issuing a grant or loan;
        (C) investigating a person engaging in a specified activity authorized by agency action;
 or
        (D) responding to a request under Title 63G, Chapter 2, Government Records Access
 and Management Act.
        (c) "Applicable statute" means the following to the extent that the statute governs
 agency action:
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       02-02-24 9:07 AM                                                      1st Sub. (Buff) H.B. 230
         (i) this title;
         (ii) Title 16, Corporations;
         (iii) Title 38, Chapter 11, Residence Lien Restriction and Lien Recovery Fund Act;
         (iv) Title 57, Real Estate;
         (v) Title 58, Occupations and Professions;
         (vi) Title 61, Securities Division - Real Estate Division;
         (vii) Title 70, Trademarks and Trade Names; or
         (viii) another state statute administered by an agency.
         (d) "Application" means a request for agency action.
         (e) "Complete application" means an application in a form approved by an agency that
 contains all of the information required by statute or rule for the agency to issue an order.
         (f) "Department" means the Department of Commerce.
         (g) (i) "Order" means an order or final action issued by an agency under an applicable
 statute that:
         (A) approves an agency action;
         (B) renews an agency action;
         (C) denies an agency action;
         (D) modifies or amends an agency action; or
         (E) revokes and reissues an agency action.
         (ii) "Order" does not include an order terminating an agency action.
         (2) Unless applicable statute provides for a different time period to issue the order, an
 agency shall issue an order related to agency action by no later than the later of:
         (a) 180 days after the day on which the agency receives a complete application seeking
 agency action; or
         (b) if the applicable statute provides for public comment, 180 days after the day on
 which the time period ends for the agency to review public comments.
         (3) (a) If a person files an application for agency action that an agency determines is
 incomplete, the agency shall notify the person:
         (i) that the application is incomplete; and
         (ii) what the person needs to do to complete the application.
         (b) If a person submits an application a second time to address what the agency notifies
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        1st Sub. (Buff) H.B. 230                                                    02-02-24 9:07 AM
 the person needs to be done under Subsection (3)(a)(ii) to complete the application, the agency
 may raise additional issues concerning the completeness of the application.
        (c) If a person submits an application for a third time to address what the agency
 notifies the person needs to be done under Subsection (3)(a)(ii) to complete the application, the
 agency may not raise any additional issue concerning the completeness of the application
 unless the agency can demonstrate that the issue is based on new information obtained after the
 agency sent the notice required under Subsection (3)(a).
        (d) An agency shall publish on a public website for each type of agency action the
 requirements for an application to be considered a complete application.
        (4) A petition appealing, either administratively or judicially, an order related to an
 application seeking agency action is not subject to the requirements of this section.
        (5) This section shall be interpreted in a manner that provides the greatest protection to
 a person seeking agency action.
        (6) This section does not apply to an agency action if application of this section to the
 agency action is preempted by federal law.
        (7) An application for agency action is considered approved if an agency fails to
 comply with this section.
        Section 2. Section 19-1-309 is enacted to read:
        19-1-309. Timing of department agency action.
        (1) As used in this section:
        (a) "Agency" means the department or an agency, division, board, office, or other
 subpart of the department.
        (b) (i) "Agency action" means a paper-based or electronic action that grants authority to
 engage in a specified activity under an applicable statute or a rule made under an applicable
 statute, including:
        (A) a permit;
        (B) a plan;
        (C) a license;
        (D) a registration;
        (E) a certificate;
        (F) an approval order; or
                                                     -4-
        02-02-24 9:07 AM                                                     1st Sub. (Buff) H.B. 230
         (G) another administrative authorization made under an applicable statute.
         (ii) Notwithstanding Subsection (1)(b)(i), "agency action" does not include:
         (A) responding to a complaint;
         (B) issuing a grant or loan;
         (C) investigating a person engaging in a specified activity authorized by agency action;
 or
         (D) responding to a request under Title 63G, Chapter 2, Government Records Access
 and Management Act.
         (c) "Applicable statute" means the following to the extent that the statute governs
 agency action:
         (i) this title; or
         (ii) another state statute administered by an agency.
         (d) "Application" means a request for agency action.
         (e) "Complete application" means an application in a form approved by an agency that
 contains all of the information required by statute or rule for the agency to issue an order.
         (f) (i) "Order" means an order or final action issued by an agency under an applicable
 statute that:
         (A) approves an agency action;
         (B) renews an agency action;
         (C) denies an agency action;
         (D) modifies or amends an agency action; or
         (E) revokes and reissues an agency action.
         (ii) "Order" does not include an order terminating an agency action.
         (2) Unless applicable statute provides for a different time period to issue the order, an
 agency shall issue an order related to agency action by no later than the later of:
         (a) 180 days after the day on which the agency receives a complete application seeking
 agency action; or
         (b) if the applicable statute provides for public comment, 180 days after the day on
 which the time period ends for the agency to review public comments.
         (3) (a) If a person files an application for agency action that an agency determines is
 incomplete, the agency shall notify the person:
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        1st Sub. (Buff) H.B. 230                                                    02-02-24 9:07 AM
        (i) that the application is incomplete; and
        (ii) what the person needs to do to complete the application.
        (b) If a person submits an application a second time to address what the agency notifies
 the person needs to be done under Subsection (3)(a)(ii) to complete the application, the agency
 may raise additional issues concerning the completeness of the application.
        (c) If a person submits an application for a third time to address what the agency
 notifies the person needs to be done under Subsection (3)(a)(ii) to complete the application, the
 agency may not raise any additional issue concerning the completeness of the application
 unless the agency can demonstrate that the issue is based on new information obtained after the
 agency sent the notice required under Subsection (3)(a).
        (d) An agency shall publish on a public website for each type of agency action the
 requirements for an application to be considered a complete application.
        (4) A petition appealing, either administratively or judicially, an order related to an
 application seeking agency action is not subject to the requirements of this section.
        (5) This section shall be interpreted in a manner that provides the greatest protection to
 a person seeking agency action.
        (6) This section does not apply to an agency action if application of this section to the
 agency action is preempted by federal law.
        (7) An application for agency action is considered approved if an agency fails to
 comply with this section.
        Section 3. Section 79-1-105 is enacted to read:
        79-1-105. Timing of department agency action.
        (1) As used in this section:
        (a) "Agency" means the department or an agency, division, board, office, or other
 subpart of the department.
        (b) (i) "Agency action" means a paper-based or electronic action that grants authority to
 engage in a specified activity under an applicable statute or a rule made under an applicable
 statute, including:
        (A) a permit;
        (B) a plan;
        (C) a license;
                                                     -6-
        02-02-24 9:07 AM                                                     1st Sub. (Buff) H.B. 230
         (D) a registration;
         (E) a certificate;
         (F) an approval order, including action regarding a notice of intention or surety for a
 mining operation;
         (G) a finding that a notice of intention is complete for a small mining operation;
         (H) a water right or action on a change application; or
         (I) another administrative authorization made under an applicable statute.
         (ii) Notwithstanding Subsection (1)(b)(i), "agency action" does not include:
         (A) responding to a complaint;
         (B) issuing a grant or loan;
         (C) investigating a person engaging in a specified activity authorized by agency action;
 or
         (D) responding to a request under Title 63G, Chapter 2, Government Records Access
 and Management Act.
         (c) "Applicable statute" means the following to the extent that the statute governs
 agency action:
         (i) this title;
         (ii) Title 23A, Wildlife Resources Act;
         (iii) Title 40, Mines and Mining;
         (iv) Title 65A, Forestry, Fire, and State Lands;
         (v) Title 73,Water and Irrigation; or
         (vi) another state statute administered by an agency.
         (d) "Application" means a request for agency action.
         (e) "Complete application" means an application in a form approved by an agency that
 contains all of the information required by statute or rule for the agency to issue an order.
         (f) (i) "Order" means an order or final action issued by an agency under an applicable
 statute that:
         (A) approves an agency action;
         (B) renews an agency action;
         (C) denies an agency action;
         (D) modifies or amends an agency action; or
                                                      -7-
        1st Sub. (Buff) H.B. 230                                                    02-02-24 9:07 AM
        (E) revokes and reissues an agency action.
        (ii) "Order" does not include an order terminating an agency action.
        (2) Unless applicable statute provides for a different time period to issue the order, an
 agency shall issue an order related to agency action by no later than the later of:
        (a) 180 days after the day on which the agency receives a complete application seeking
 agency action; or
        (b) if the applicable statute provides for public comment, 180 days after the day on
 which the time period ends for the agency to review public comments.
        (3) (a) If a person files an application for agency action that an agency determines is
 incomplete, the agency shall notify the person:
        (i) that the application is incomplete; and
        (ii) what the person needs to do to complete the application.
        (b) If a person submits an application a second time to address what the agency notifies
 the person needs to be done under Subsection (3)(a)(ii) to complete the application, the agency
 may raise additional issues concerning the completeness of the application.
        (c) If a person submits an application for a third time to address what the agency
 notifies the person needs to be done under Subsection (3)(a)(ii) to complete the application, the
 agency may not raise any additional issue concerning the completeness of the application
 unless the agency can demonstrate that the issue is based on new information obtained after the
 agency sent the notice required under Subsection (3)(a).
        (d) An agency shall publish on a public website for each type of agency action the
 requirements for an application to be considered a complete application.
        (4) A petition appealing, either administratively or judicially, an order related to an
 application seeking agency action is not subject to the requirements of this section.
        (5) This section shall be interpreted in a manner that provides the greatest protection to
 a person seeking agency action.
        (6) This section does not apply to an agency action if application of this section to the
 agency action is preempted by federal law.
        (7) An application for agency action is considered approved if an agency fails to
 comply with this section.
        Section 4. Effective date.
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      02-02-24 9:07 AM                                  1st Sub. (Buff) H.B. 230
    This bill takes effect on May 1, 2024.
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