(1) As used in this section:

1. (a) "High impact federal funds request" means a new federal funds request that will or could:

   1. (i) result in the state receiving total payments of $10,000,000 or more per year from the federal government;
   2. (ii) require the state to add 11 or more permanent full-time employees, 11 or more permanent part-time employees, or combination of permanent full-time and permanent part-time employees equal to 11 or more in order to receive the new federal funds or participate in the new federal program; or
   3. (iii) require the state to expend more than $1,000,000 of new state money in a fiscal year in order to receive or administer the new federal funds or participate in the new federal program.

2. (b) "Medium impact federal funds request" means a new federal funds request that will or could:

   1. (i) result in the state receiving total payments of more than $1,000,000 but less than $10,000,000 per year from the federal government;
   2. (ii) require the state to add more than zero but less than 11 permanent full-time employees, more than zero but less than 11 permanent part-time employees, or a combination of permanent full-time employees and permanent part-time employees equal to more than zero but less than 11 in order to receive or administer the new federal funds or participate in the new federal program; or
   3. (iii) require the state to expend $1 to $1,000,000 of new state money in a fiscal year in order to receive or administer the new federal funds or participate in the new federal program.

(2)

1. (a)

   1. (i) Before obligating the state to accept or receive new federal funds or to participate in a new federal program under a medium impact federal funds request that was not authorized during a legislative session as provided in Section 63J-5-201, an agency shall:

      1. (A) submit the federal funds request summary to the governor, the Judicial Council, or the State Board of Education, as appropriate, for approval or rejection; and
      2. (B) if the governor, the Judicial Council, or the State Board of Education approves the new federal funds request, submit the federal funds request summary to the Legislative Executive Appropriations Committee for its review and recommendations.
   2. (ii) The procedures required under Subsection (2)(a)(i) shall be performed, if possible, before the date that the medium impact funds request is formally submitted, but not later than three months after the date of formal submission.

2. (b) The Legislative Executive Appropriations Committee shall review the federal funds request summary and may:

   1. (i) recommend that the agency accept the new federal funds;
   2. (ii) recommend that the agency not accept the new federal funds; or
   3. (iii) recommend to the governor that the governor call a special session of the Legislature to review and approve or reject the acceptance of the new federal funds.

(3)

1. (a)

   1. (i) Before obligating the state to accept or receive new federal funds or to participate in a new federal program under a high impact federal funds request that was not authorized during a legislative session as provided in Section 63J-5-201, an agency shall:

      1. (A) submit the federal funds request summary to the governor, the Judicial Council, or the State Board of Education, as appropriate, for approval or rejection; and
      2. (B) if the governor, the Judicial Council , or the State Board of Education approves the new federal funds request, submit the federal funds request summary to the Legislature for its approval or rejection in an annual general session or a special session.
   2. (ii) The procedures required under Subsection (3)(a)(i) shall be performed, if possible, before the date that the high impact funds request is formally submitted, but not later than three months after the date of formal submission.

2. (b)

   1. (i) If the Legislature approves the new federal funds request, the agency may accept the new federal funds or participate in the new federal program.
   2. (ii) If the Legislature fails to approve the new federal funds request, the agency may not accept the new federal funds or participate in the new federal program.

(4) If an agency fails to comply with the procedures of this section or fails to obtain the Legislature's approval:

1. (a) the governor, the Judicial Council, or the State Board of Education, as appropriate, may require the agency to withdraw the new federal funds request or refuse or return the new federal funds;
2. (b) the Legislature may, if federal law allows, opt out or decline to participate in the new federal program or decline to receive the new federal funds; or
3. (c) the Legislature may reduce the agency's General Fund appropriation in an amount less than, equal to, or greater than the amount of federal funds received by the agency.