UtahS.B. 1482026 General SessionSenateWALLET

General Oversight Amendments

Sponsored By: Daniel McCay (Republican)

Signed by Governor

Open and Public MeetingsLegislative OperationsLegislative Committees and Task ForcesLegislative OrganizationAdministrative RulemakingAdministrative Rulemaking and ProceduresDepartment of Government OperationsGovernment Operations (State Issues)Legislative Staff Offices

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Bill Overview

Analyzed Economic Effects

16 provisions identified: 10 benefits, 0 costs, 6 mixed.

Fairer Medicaid provider audits and reviews

The Medicaid Inspector General must consult providers and adopt clear audit rules. Audits must use appropriate clinical expertise, and contractors are paid flat fees that count over‑ and under‑payments. Extrapolation is allowed only if the error rate is over 10% for a three‑year sample, education failed, and yearly claims for that code exceed $200,000. The department must tell the Social Services Appropriations Subcommittee before using extrapolation, and providers can appeal by claim or by sample. The Inspector General also reviews Medicaid manuals and bulletins before release, reports conflicts, monitors spending, recovers improper payments, and refers crimes.

Plan for carbon storage safety rules

State environmental and geological agencies must work together on rules for carbon capture and long‑term underground storage. The rules must cover site checks, permits, monitoring, injectant safety, closure, liability, and public information, and protect health while limiting unacceptable leaks. These rules do not apply to Class II wells used only for enhanced oil and gas recovery. Agencies must present recommendations to the General Oversight Committee and report progress to interim committees.

State contractors: stricter coverage rules, worker claims

Beginning May 6, 2026, the department sets and enforces health coverage rules on large state design and construction contracts. These rules cover prime contracts of at least $2,000,000 and subcontracts of at least $1,000,000. For intentional violations, contractors face a three‑month suspension, a six‑month suspension for a second, debarment after a third, and fines up to 50% of the cost to buy the required coverage. If your employer on a covered job intentionally skips the required plan, you can sue your employer to recover the medical costs the plan would have paid. Employers have a good‑faith defense based on an authorized written statement or a department finding that an exemption applied, and the department posts the benchmark plan online.

Health coverage rules for state contractors

Contractors on state design or construction jobs must offer qualified health coverage to employees who work at least 30 hours a week. The rule applies to prime contracts of $2,000,000 or more and subcontracts of $1,000,000 or more, including State Capitol projects. Coverage must start no later than the first day of the month after 60 days from hire. Contractors must give the state a recent actuary or underwriter statement and require covered subcontractors to do the same. Exemptions apply for sole‑source or emergency procurements and when following this rule would jeopardize federal funds.

Penalties and audits on contractor coverage

The state can audit covered contractors during a project and request an actuary’s certificate or full plan documents. If a contractor intentionally breaks the coverage rules, penalties include a three‑month suspension for the first violation, six months for the second, and possible debarment after the third, plus fines up to 50% of the cost to buy the required coverage. Workers can sue to recover health costs that the required coverage would have paid. Administrators who provide compliance statements are protected from liability unless grossly negligent. It is illegal to split or change contracts to dodge these rules. Penalty money goes to the Medicaid Growth Reduction and Budget Stabilization Account.

Stronger legislative control over agency rules

The General Oversight Committee can continuously review agency rules, emergency rules, executive orders, and public‑health orders, and invite relevant committee chairs to join reviews. Any proposed rule expected to cost over $1,000,000 statewide in five years must be sent to budget and interim committees before it takes effect. By law, a “substantial fiscal impact” for rules means at least $2,000,000 over five years. Every agency rule in effect on February 28 expires on May 1 unless the Legislature reauthorizes it in the annual session.

Legislative checks on costly water plans

Before sending a water‑quality TMDL to the EPA, the Water Quality Board must get interim review if expected costs are over $10,000,000 and under $100,000,000, or full legislative approval at $100,000,000 or more. For nitrogen or phosphorus rules, review starts above $250,000 and legislative approval is required at $10,000,000 or more. An independent licensed engineer must produce cost estimates, and the Legislative Fiscal Analyst resolves big differences. This section is repealed July 1, 2029.

Students can challenge civil‑liberty rules

Beginning May 6, 2026, students can file a complaint when a campus policy affects their civil liberties. The State Board of Higher Education reviews each complaint within 30 days. If the board finds good faith, the school must start rulemaking within 60 days; if dismissed, the student is notified. Each year before November 30, the board reports complaint counts and the policies involved to the General Oversight Committee.

Legislative oversight committee grows, meets monthly

Beginning May 6, 2026, the General Oversight Committee has 13 permanent members: six senators and seven representatives. No more than four senators or five representatives may be from the same party. A quorum needs four representatives and three senators. The committee meets at least monthly unless the chairs suspend the requirement. The office sends each rules bulletin to the committee.

More open, orderly rulemaking process

Agencies must give at least 30 days for public comment on proposed rules. A rule can take effect at least 7 days after comments close and no later than 120 days after publication, or it lapses. The Office of Administrative Rules must log all rules, publish monthly bulletins, and compile the code for public access. People can petition agencies to make or change rules; agencies must act fast or face a court order. The law clarifies who counts as an agency, what counts as a rule, and that properly adopted rules have the force of law. It also repeals one code section as part of this update.

New committee for local health funding

The health department creates a governance committee with department leaders and local health representatives. The group reviews state and federal funding for local health departments, estimates local costs of new policies, coordinates programs, and flags needed funding. It reviews most federal funding applications before submission and reports decisions to the General Oversight Committee by November 1 each year.

Temporary freeze on air and water fees

The Air and Water Quality Boards could not make new rules (with limited exceptions) before June 30, 2021 unless rulemaking began by July 1, 2020. They also could not add or raise fees from August 31, 2020 to June 30, 2021. The department must report to the General Oversight Committee when it uses an exception. These limits did not apply in first‑ or second‑class counties.

Notice rules for rationing care

The health department must follow a set process before adopting or using criteria to ration scarce health care. It must give written notice to legislative leaders, the Governor, oversight chairs, and a hospital representative when hospitals are affected. For emergencies, it must send notice within 48 hours after the criteria take effect. These requirements apply whether the criteria are advisory or binding and do not get suspended during emergencies.

Post state board votes online

Beginning January 1, 2027, the state board must post each vote on its website within seven business days. The post must show the date, time, place, subject, who voted, each vote, and the audio or video, with one‑click access from the home page. The board must give each member any contract to be considered at least five days before the meeting. The General Oversight Committee may request a compliance report.

Stronger cost checks on new rules

Beginning May 6, 2026, agencies must run one‑year and five‑year cost tests before filing a proposed rule. The analysis follows criteria from the Governor’s Office of Planning and Budget and covers industry and small‑business impacts. If a rule would measurably harm small businesses, the agency must consider ways to reduce the harm, like less‑strict requirements, longer schedules, consolidation, performance standards, or exemptions, when allowed by federal law.

Private sessions for sensitive oversight

The General Oversight Committee may close meetings to review an individual child‑welfare case, information under a confidentiality agreement, litigation matters, or whistleblower complaints. Closed meetings must still follow the Open and Public Meetings Act. Records from these reviews are private under state law and may be shared only as allowed by law.

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Sponsors & Cosponsors

Sponsor

  • Daniel McCay

    Republican • Senate

Cosponsors

  • Trevor Lee

    Republican • House

Roll Call Votes

All Roll Calls

Yes: 165 • No: 15

Senate vote 3/5/2026

Senate/ concurs with House amendment

Yes: 26 • No: 1

Senate vote 3/5/2026

Senate/ uncircled

Yes: 0 • No: 0

Senate vote 3/5/2026

Senate/ circled

Yes: 0 • No: 0

House vote 3/4/2026

House/ floor amendment

Yes: 0 • No: 0

House vote 3/4/2026

House/ substituted

Yes: 0 • No: 0

House vote 3/4/2026

House/ passed 3rd reading

Yes: 74 • No: 0

House vote 2/25/2026

House Comm - Substitute Recommendation

Yes: 7 • No: 1

House vote 2/25/2026

House Comm - Favorable Recommendation

Yes: 6 • No: 2

Senate vote 2/20/2026

Senate/ uncircled

Yes: 0 • No: 0

Senate vote 2/20/2026

Senate/ passed 3rd reading

Yes: 18 • No: 5

Senate vote 2/9/2026

Senate/ circled

Yes: 0 • No: 0

Senate vote 2/6/2026

Senate/ floor amendment

Yes: 0 • No: 0

Senate vote 2/6/2026

Senate/ passed 2nd reading

Yes: 23 • No: 5

House vote 1/23/2026

Senate Comm - Substitute Recommendation

Yes: 6 • No: 0

House vote 1/23/2026

Senate Comm - Favorable Recommendation

Yes: 5 • No: 1

Actions Timeline

  1. Governor Signed

    3/26/2026
  2. Senate/ to Governor

    3/11/2026Senate
  3. Senate/ received enrolled bill from Printing

    3/11/2026Senate
  4. Senate/ enrolled bill to Printing

    3/10/2026Senate
  5. Enrolled Bill Returned to House or Senate

    3/10/2026
  6. Draft of Enrolled Bill Prepared

    3/6/2026
  7. Bill Received from Senate for Enrolling

    3/6/2026
  8. Senate/ signed by President/ sent for enrolling

    3/6/2026Senate
  9. Senate/ received from House

    3/6/2026Senate
  10. House/ to Senate

    3/5/2026House
  11. House/ signed by Speaker/ returned to Senate

    3/5/2026House
  12. House/ received from Senate

    3/5/2026House
  13. Senate/ to House

    3/5/2026Senate
  14. Senate/ concurs with House amendment

    3/5/2026Senate
  15. Senate/ uncircled

    3/5/2026Senate
  16. Senate/ circled

    3/5/2026Senate
  17. Senate/ placed on Concurrence Calendar

    3/4/2026Senate
  18. Senate/ received from House

    3/4/2026Senate
  19. House/ to Senate

    3/4/2026House
  20. House/ passed 3rd reading

    3/4/2026House
  21. House/ floor amendment

    3/4/2026House
  22. House/ substituted

    3/4/2026House
  23. House/ 3rd reading

    3/4/2026House
  24. House/ 2nd reading

    3/4/2026House
  25. House/ Rules to 3rd Reading Calendar

    3/4/2026House

Bill Text

  • Enrolled

    3/10/2026

  • Amended 3/5/2026 16:03:500

    3/5/2026

  • Substitute #3

    3/2/2026

  • Substitute #2

    2/23/2026

  • Amended 2/6/2026 15:02:387

    2/6/2026

  • Substitute #1

    1/23/2026

  • Introduced

    1/16/2026

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