17-1-603. Review of dedicated revenue provisions. (1) Each interim, the legislative finance committee shall review dedicated revenue provisions based upon procedures established under subsection (4) and the revenue dedication guidelines set forth in 17-1-602.
     (2) The legislature recognizes that dedicated revenue provisions are also subject to review by:
     (a) the office of budget and program planning in the development and implementation of the executive budget and analysis of legislation;
     (b) the legislative fiscal division in analyzing the executive budget;
     (c) the legislative services division in drafting legislation; and
     (d) the legislative audit division in auditing agencies.
     (3) To avoid unnecessary use of dedicated revenue provisions, the entities listed in subsection (2) shall, in the course of current duties, consider the guidelines listed in 17-1-602 and any criteria provided in the legislation dedicating the revenue and listed in this subsection. The expenditures from a dedicated revenue provision must be based on requirements for meeting a legislatively established outcome. Statutorily mandated programs or activities funded through dedicated revenue provisions from general revenue sources must be reviewed to the same extent as programs or activities funded from the general fund. The use of a dedicated revenue provision may be justified if it satisfies one or more of the following:
     (a) The program or activity funded provides direct benefits for those who pay the dedicated tax, fee, or assessment, and the tax, fee, or assessment is commensurate with the costs of the program or activity.
     (b) The use of the dedicated revenue provision provides special information or other advantages that could not be obtained without the revenue dedication.
     (c) The dedicated revenue provision involves collection and allocation formulas that are appropriate to the present circumstances and current priorities of state and local government.
     (d) The dedicated revenue provision does not impair the legislature's ability to scrutinize budgets, control expenditures, and establish priorities for state spending.
     (e) The dedicated revenue provision results in an appropriate projected ending fund balance.
     (f) The dedicated revenue provision fulfills a continuing need recognized by both local government and the legislature.
     (g) The dedicated revenue provision does not result in accounting or auditing inefficiency.
     (4) The legislative finance committee shall establish procedures to facilitate a biennial review and evaluation of dedicated revenue provisions.
     (5) Upon completion of the review, the committee shall report a summary of its findings to the legislature, including its recommendation of termination or extension, with or without modification, of the dedicated revenue provision.

     History: En. Sec. 3, Ch. 400, L. 2001.