It could hold meetings in secret. Its documents wouldn't be subject to Utah's records access law. And the taxpayer money it receives would no longer be public money once it leaves state coffers.

This unusual creation of state government would be known as an "independent" entity. Some watchdog groups say it would be a monster. Others say such agencies are necessary to conduct business the state can't.

The Legislature's Quasi-Governmental Entities Committee has spent the past eight months reviewing the 10 organizations that could fall into the unusual category, including the Workers' Compensation Fund, Heber Valley Railroad Authority and the once-embattled Utah Technology Finance Corp. Most are already exempt from state laws regarding money management, budget procedures and administration.

A proposed bill the committee discussed Tuesday drew jeers on several fronts, and legislators made changes Wednesday morning to satisfy some of the complaints and were hashing over other amendments.

Meantime, at least one committee member believes the bill should be scrapped because it can't account for every nuance in the distinct entities.

"I think we're just swinging our swords at windmills," said Rep. Ray Short, R-Holladay. "We're trying to put a lot into one box instead of doing one at a time."

If the legislation passes in the upcoming session, the committee next year will evaluate which agencies fit into the new framework and which don't. Legislation is in the works to privatize the Utah Technology Finance Corp.

"I don't think we ought to have quasi-governmental entities because when you set these up, no one knows what they're doing," said Claire Geddes of Utah Legislative Watch. Most are required to report to the state only once a year.

The legislation is intended to give government more oversight, insulate the state from financial liability and bring uniformity to the rules governing the organizations.

Betsy Ross, an attorney for the state auditor and state treasurer, said those two offices oppose the bill. The treasurer is the custodian of all public money and that responsibility does not change once the dollars flow into an quasi-governmental entity, she said.

The committee changed the bill Wednesday to say only tax dollars going into trust funds would no longer be considered public money.

The Utah Press Association challenged a provision in the proposed bill that would exempt the organizations from the Government Records Access and Management Act and the Utah open meetings law.

The committee removed the exemption so that each agency would be subject to those laws unless they can make a case otherwise.

"There are exceptions that are going to be made. These are two. I don't think they are the only ones," he said.

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Lobbyists for Workers' Compensation Fund and the Utah State Retirement Office argued against removing any exemptions. Neither use public funds, and attorney Dennis Lloyd said WCF needs certain exemptions from state law to conduct business for policy holders. The board of directors, he said, would not be keen on having an open meeting about its marketing strategies.

State retirement office attorney Kevin Howard said the system can't be shackled with laws that hinder its ability to invest money for its members. The exemptions, he said, meets lawmakers' desire to remove liability from the state.

"We're not going to give away the farm but we're going to evaluate each on of those (entities) individually and make our decisions," Bigelow said.


E-MAIL: romboy@desnews.com

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