17-77-203. Use and oversight of public funds.

379 words·~2 min read·/ut/title-17/chapter-77/17-77-203

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

Effective 11/6/2025

(a)Each local substance abuse authority is responsible for overseeing all public funds the local substance abuse authority receives, to determine that public funds are utilized in accordance with:

(i)federal and state law;

(ii)the rules and policies of the department; and

(iii)any contract between the local substance abuse authority and the department or a private provider.

(b)Local substance abuse authority oversight includes requiring that neither a private provider that contracts with the local substance abuse authority to provide comprehensive substance abuse programs or services for the local substance abuse authority, nor any of the private provider's employees:

(i)violate any applicable federal or state criminal law;

(ii)knowingly violate:

(A)any applicable department rule or policy ; or

(B)any provision of a contract between the local substance abuse authority and the department or the private provider;

(iii)knowingly:

(A)keep any false account; or

(B)make any false entry or erasure in any account of or relating to the public funds;

(iv)fraudulently alter, falsify, conceal, destroy, or obliterate any account of or relating to public funds;

(v)fail to ensure competent oversight for lawful disbursement of public funds;

(vi)appropriate public funds for an unlawful use or for a use that does not comply with contract provisions; or

(vii)knowingly or intentionally use public funds:

(A)unlawfully;

(B)in violation of a governmental contract provision; or

(C)in violation of state policy.

(2)A local substance abuse authority that knows or reasonably should know of any of the circumstances described in Subsection

(1), and that fails or refuses to take timely corrective action in good faith shall, in addition to any other penalties provided by law, be required to make full and complete repayment to the state of all public funds improperly used or expended.

(3)Any public funds required to be repaid to the state by a local substance abuse authority under Subsection

(2), based upon the actions or failure of the contract provider, may be recovered by the local substance abuse authority from the contract provider, in addition to the local substance abuse authority's costs and attorney fees.

Renumbered and Amended by Chapter 14 , 2025 Special Session 1