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House passes HB55 clarifying when state auditor may review nonprofits; bill narrows scope for many water entities

Utah House of Representatives · February 24, 2017
AI-Generated Content: All content on this page was generated by AI to highlight key points from the meeting. For complete details and context, we recommend watching the full video. so we can fix them.

Summary

The Utah House on Feb. 24 adopted a second substitute of HB55 to define when the state auditor may treat nonprofit organizations as governmental entities subject to audit. The measure, which sets a controlling‑interest test and a 100% ownership threshold for water companies, passed 38–26.

SALT LAKE CITY — The Utah House passed second substitute House Bill 55 on Feb. 24, establishing a three‑part test for when the state auditor may treat a nonprofit as a governmental entity and therefore subject it to governmental audit rules. The measure passed on a roll call of 38 Yeas to 26 Nays and was referred to the Senate.

Representative Coleman, the bill sponsor, told the chamber the legislation responds to confusion encountered by the State Auditor when entities look governmental but are legally nonprofit. Coleman said the measure aims to ‘‘define the lines’’ so the auditor ‘‘is not going to do more than his duty’’ and so entities and auditors have a clearer standard.

Under the bill’s language presented to the House, a nonprofit…

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