H.B. 264 Enrolled

1

REVISOR'S STATUTE
2 2007 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: Stephen H. Urquhart
5 Senate Sponsor: John W. Hickman
6
7 LONG TITLE
8 General Description:
9 This bill modifies parts of the Utah Code to make technical corrections including
10 eliminating references to repealed provisions, making minor wording changes, updating
11 cross references, and correcting numbering.
12 Highlighted Provisions:
13 This bill:
14 . modifies parts of the Utah Code to make technical corrections including eliminating
15 references to repealed provisions, making minor wording changes, updating cross
16 references, and correcting numbering.
17 Monies Appropriated in this Bill:
18 None
19 Other Special Clauses:
20 None
21 Utah Code Sections Affected:
22 AMENDS:
23 3-1-9, Utah Code Annotated 1953
24 3-1-17, Utah Code Annotated 1953
25 3-1-41, as last amended by Chapter 82, Laws of Utah 1997
26 7-1-104, as last amended by Chapter 267, Laws of Utah 1989
27 7-7-12, as last amended by Chapter 200, Laws of Utah 1994
28 10-8-2, as last amended by Chapters 136 and 254, Laws of Utah 2005
29 10-9a-801, as renumbered and amended by Chapter 254, Laws of Utah 2005

30 11-13-314, as enacted by Chapter 136, Laws of Utah 2005
31 13-5-9, as last amended by Chapter 23, Laws of Utah 1965
32 13-11a-3, as enacted by Chapter 205, Laws of Utah 1989
33 13-21-7, as enacted by Chapter 29, Laws of Utah 1985
34 16-6a-822, as last amended by Chapter 228, Laws of Utah 2006
35 17-27a-801, as renumbered and amended by Chapter 254, Laws of Utah 2005
36 17A-2-412, as last amended by Chapter 368, Laws of Utah 1998
37 23-13-1, as enacted by Chapter 46, Laws of Utah 1971
38 26-18-503, as enacted by Chapter 215, Laws of Utah 2004
39 26-34-2, as enacted by Chapter 276, Laws of Utah 1989
40 26-39-104, as last amended by Chapter 37, Laws of Utah 2006
41 31A-16-105, as repealed and reenacted by Chapter 258, Laws of Utah 1992
42 31A-17-402, as last amended by Chapter 186, Laws of Utah 2002
43 31A-26-210, as last amended by Chapter 204, Laws of Utah 1986
44 32A-13-103, as last amended by Chapter 185, Laws of Utah 2002
45 34-19-5, as enacted by Chapter 85, Laws of Utah 1969
46 35A-3-313, as last amended by Chapter 29, Laws of Utah 2004
47 36-26-102, as enacted by Chapter 362, Laws of Utah 2006
48 38-1-27, as last amended by Chapter 297, Laws of Utah 2006
49 38-2-3.2, as enacted by Chapter 62, Laws of Utah 1953
50 40-10-9, as enacted by Chapter 145, Laws of Utah 1979
51 41-3-408, as last amended by Chapter 175, Laws of Utah 1994
52 41-12a-305, as enacted by Chapter 242, Laws of Utah 1985
53 41-22-29, as last amended by Chapter 114, Laws of Utah 1999
54 49-12-203, as last amended by Chapter 143, Laws of Utah 2006
55 49-12-402, as last amended by Chapter 116, Laws of Utah 2005
56 49-13-203, as last amended by Chapter 143, Laws of Utah 2006
57 53A-1-706, as last amended by Chapter 88, Laws of Utah 2004

58 53A-2-120, as enacted by Chapter 234, Laws of Utah 2003
59 53A-2-213, as last amended by Chapter 119, Laws of Utah 1993
60 53A-8-105, as last amended by Chapter 324, Laws of Utah 1999
61 53A-17a-107, as last amended by Chapter 268, Laws of Utah 1994
62 53A-28-401, as enacted by Chapter 62, Laws of Utah 1996
63 53B-8a-108, as last amended by Chapter 109, Laws of Utah 2005
64 53C-1-201, as last amended by Chapter 139, Laws of Utah 2006
65 54-1-3, as last amended by Chapter 246, Laws of Utah 1983
66 54-4-8, as last amended by Chapter 265, Laws of Utah 1998
67 54-8-24, as enacted by Chapter 157, Laws of Utah 1969
68 54-9-103, as last amended by Chapter 105, Laws of Utah 2005
69 57-1-31.5, as enacted by Chapter 209, Laws of Utah 2002
70 57-2a-4, as enacted by Chapter 155, Laws of Utah 1988
71 57-2a-7, as last amended by Chapter 88, Laws of Utah 1989
72 57-12-2, as enacted by Chapter 24, Laws of Utah 1972
73 57-12-14, as enacted by Chapters 295 and 321, Laws of Utah 1998
74 58-13-2, as last amended by Chapters 153 and 299, Laws of Utah 2005
75 58-17b-504, as enacted by Chapter 280, Laws of Utah 2004
76 58-61-307, as last amended by Chapter 281, Laws of Utah 2001
77 59-2-201, as last amended by Chapter 360, Laws of Utah 1997
78 59-2-1108, as last amended by Chapter 143, Laws of Utah 2003
79 59-2-1302, as last amended by Chapter 143, Laws of Utah 2003
80 59-2-1331, as last amended by Chapter 279, Laws of Utah 2006
81 59-2-1347, as last amended by Chapter 143, Laws of Utah 2003
82 59-7-605, as last amended by Chapters 108 and 294, Laws of Utah 2005
83 59-10-1009, as renumbered and amended by Chapter 223, Laws of Utah 2006
84 59-11-102, as renumbered and amended by Chapter 2, Laws of Utah 1987
85 59-13-204, as last amended by Chapter 232, Laws of Utah 2001

86 59-14-208, as renumbered and amended by Chapter 2, Laws of Utah 1987
87 59-22-304, as renumbered and amended by Chapter 229, Laws of Utah 2000
88 59-22-307, as renumbered and amended by Chapter 229, Laws of Utah 2000
89 61-2b-25, as last amended by Chapter 117, Laws of Utah 1999
90 62A-4a-107, as last amended by Chapter 75, Laws of Utah 2006
91 63-11-1, Utah Code Annotated 1953
92 63-30d-203, as enacted by Chapter 267, Laws of Utah 2004
93 63-38f-501, as last amended by Chapter 223, Laws of Utah 2006
94 63-46b-3, as last amended by Chapter 162, Laws of Utah 2006
95 63-46b-8, as last amended by Chapter 72, Laws of Utah 1988
96 63-55-259, as last amended by Chapters 232 and 289, Laws of Utah 2005
97 63-55-263, as last amended by Chapters 82 and 86, Laws of Utah 2006
98 63-55b-154, as last amended by Chapter 205, Laws of Utah 2003
99 63-55b-159, as last amended by Chapter 90, Laws of Utah 2004
100 63-55b-163, as last amended by Chapter 340, Laws of Utah 2006
101 63-55b-178, as last amended by Chapter 65, Laws of Utah 2004
102 63-56-806, as renumbered and amended by Chapter 25, Laws of Utah 2005
103 63-65-2, as last amended by Chapter 294, Laws of Utah 2005
104 63-90-2, as last amended by Chapter 293, Laws of Utah 1997
105 63A-3-205, as last amended by Chapter 294, Laws of Utah 2005
106 63F-1-205, as enacted by Chapter 169, Laws of Utah 2005
107 64-13-14, as last amended by Chapter 116, Laws of Utah 1987
108 67-11-2, as last amended by Chapter 92, Laws of Utah 1987
109 67-11-3, as last amended by Chapter 92, Laws of Utah 1987
110 67-11-4, Utah Code Annotated 1953
111 67-11-5, Utah Code Annotated 1953
112 67-11-6, as last amended by Chapter 92, Laws of Utah 1987
113 70A-2-504, as enacted by Chapter 154, Laws of Utah 1965

114 70A-3-312, as last amended by Chapter 79, Laws of Utah 1996
115 70A-10-102, as enacted by Chapter 154, Laws of Utah 1965
116 70C-7-107, as enacted by Chapter 24, Laws of Utah 1988
117 73-10-23, as last amended by Chapter 234, Laws of Utah 1990
118 75-2-1105, as last amended by Chapter 129, Laws of Utah 1993
119 75-3-902, as enacted by Chapter 150, Laws of Utah 1975
120 75-5-428, as enacted by Chapter 150, Laws of Utah 1975
121 76-6-505, as last amended by Chapter 291, Laws of Utah 1995
122 76-6-506.2, as last amended by Chapter 60, Laws of Utah 1991
123 76-6-603, as enacted by Chapter 78, Laws of Utah 1979
124 77-13-1, as last amended by Chapter 61, Laws of Utah 2002
125 77-19-4, as enacted by Chapter 15, Laws of Utah 1980
126 77-27-24, as enacted by Chapter 15, Laws of Utah 1980
127 77-27-29, as enacted by Chapter 15, Laws of Utah 1980
128 77-30-23, as last amended by Chapter 67, Laws of Utah 1984
129 77-30-25, as enacted by Chapter 15, Laws of Utah 1980
130 77-32-303, as last amended by Chapter 251, Laws of Utah 2001
131 78-13-1, Utah Code Annotated 1953
132 78-14-9.5, as last amended by Chapters 30 and 240, Laws of Utah 1992
133 78-24-14, Utah Code Annotated 1953
134 78-25-16, as last amended by Chapter 20, Laws of Utah 1995
135 78-31a-121, as enacted by Chapter 326, Laws of Utah 2002
136 78-34-4.5, as last amended by Chapter 358, Laws of Utah 2006
137 78-34-9, as last amended by Chapter 223, Laws of Utah 2004
138 78-34-21, as last amended by Chapter 214, Laws of Utah 2003
139 78-39-15, Utah Code Annotated 1953
140 78-45-7.5, as last amended by Chapter 324, Laws of Utah 2006
141

142 Be it enacted by the Legislature of the state of Utah:
143 Section 1. Section 3-1-9 is amended to read:
144 3-1-9. Powers.
145 [(I)] (1) An association formed under this act, or an association which might be formed
146 under this act and which existed at the time this act took effect, shall have power and capacity
147 to act possessed by natural persons and may do each and everything necessary, suitable, or
148 proper for the accomplishment of any one or more of the purposes, or the attainment of any one
149 or more of the objects herein enumerated or conducive to or expedient for the interests or
150 benefit of the association, and may exercise all powers, rights, and privileges necessary or
151 incident thereto, including the exercise of any rights, powers, and privileges granted by the
152 laws of this state to corporations generally, excepting such as are inconsistent with the express
153 provisions of this act.
154 [Special Authority.]
155 [(II)] (2) Without limiting or enlarging the grant of authority contained in [Subdivision
156 I of this section] Subsection (1), it is hereby specifically provided that every such association
157 shall have authority:
158 (a) to act as agent, broker, or attorney in fact for its members and other producers, and
159 for any subsidiary or affiliated association, and otherwise to assist or join with associations
160 engaged in any one or more of the activities authorized by its articles, and to hold title for its
161 members and other producers, and for subsidiary and affiliated association to property handled
162 or managed by the association on their behalf;
163 (b) to make contracts and to exercise by its board or duly authorized officers or agents,
164 all such incidental powers as may be necessary, suitable or proper for the accomplishment of
165 the purposes of the association and not inconsistent with law or its articles, and that may be
166 conducive to or expedient for the interest or benefit of the association;
167 (c) to make loans or advances to members or producer-patrons or to the members of an
168 association which is itself a member or subsidiary thereof; to purchase, or otherwise acquire,
169 endorse, discount, or sell any evidence of debt, obligation or security;

170 (d) to establish and accumulate reasonable reserves and surplus funds and to abolish
171 the same; also to create, maintain, and terminate revolving funds or other similar funds which
172 may be provided for in the bylaws of the association;
173 (e) to own and hold membership in or shares of the stock of other associations and
174 corporations and the bonds or other obligations thereof, engaged in any related activity; or, in
175 producing, warehousing or marketing any of the products handled by the association; or, in
176 financing its activities; and while the owner thereof, to exercise all the rights of ownership,
177 including the right to vote thereon;
178 (f) to acquire, hold, sell, dispose of, pledge, or mortgage, any property which its
179 purposes may require;
180 (g) to borrow money without limitation as to amount, and to give its notes, bonds, or
181 other obligations therefor and secure the payment thereof by mortgage or pledge;
182 (h) to deal in products of, and handle machinery, equipment, supplies and perform
183 services for nonmembers to an amount not greater in annual value than such as are dealt in,
184 handled or performed for or on behalf of its members, but the value of the annual purchases
185 made for persons who are neither members nor producers shall not exceed fifteen per centum
186 of the value of all its purchases. Business transacted by an association for or on behalf of the
187 United States or any agency or instrumentality thereof, shall be disregarded in determining the
188 volume or value of member and nonmember business transacted by such association;
189 (i) if engaged in marketing the products of its members, to hedge its operations;
190 (j) to have a corporate seal and to alter the same at pleasure;
191 (k) to continue as a corporation for the time limited in its articles, and if no time limit
192 is specified then perpetually;
193 (l) to sue and be sued in its corporate name;
194 (m) to conduct business in this state and elsewhere as may be permitted by law; and
195 (n) to dissolve and wind up.
196 Section 2. Section 3-1-17 is amended to read:
197 3-1-17. Contracts with association.

198 [(I)] (1) (a) The bylaws may require members to execute contracts with the association
199 in which the members agree to patronize the facilities created by the association, and to sell all
200 or a specified part of their products to or through it, or to buy all or a specified part of their
201 supplies from or through the association or any facilities created by it.
202 (b) If the members contract to sell through the association, the fact that for certain
203 purposes the relation between the association and its members may be one of agency shall not
204 prevent the passage from the member to the association of absolute and exclusive title to the
205 products which are the subject matter of the contract.
206 (c) Such title shall pass to the association upon delivery of the product, or at any other
207 time specified in the contract.
208 (d) If the period of the contract exceeds three years, the bylaws and the contracts
209 executed thereunder shall specify a reasonable period, not less than ten days in each year, after
210 the third year, during which the member, by giving to the association such reasonable notice as
211 the association may prescribe, may withdraw from the association; provided, that if the bylaws
212 or contracts executed hereunder so specify, a member may not withdraw from the association
213 while indebted thereto.
214 (e) In the absence of such a withdrawal provision, a member may withdraw at any time
215 after three years.
216 [Damages for Breach.]
217 [(II)] (2) The contract may fix, as liquidated damages, which shall not be regarded as
218 penalties, specific sums to be paid by the members to the association upon the breach of any
219 provision of the contract regarding the use of any facilities of the association or the sale,
220 delivery, handling, or withholding of products; and may further provide that the member who
221 breaks his contract shall pay all costs, including premiums for bonds, and reasonable attorney's
222 fees, to be fixed by the court, in case the association prevails in any action upon the contract.
223 [Equitable Relief.]
224 [(III)] (3) (a) A court of competent jurisdiction may grant an injunction to prevent the
225 breach or further breach of the contract by a member and may decree specific performance

226 thereof.
227 (b) Pending the adjudication of such an action and upon filing a verified complaint
228 showing the breach or threatened breach, and a bond in such form and amount as may be
229 approved by the court, the court may grant a temporary restraining order or preliminary
230 injunction against the member.
231 [Remedy Not Exclusive.]
232 [(IV)] (4) No remedy, either legal or equitable, herein provided for, shall be exclusive,
233 but the association may avail itself of any and all such remedies, at the same or different times,
234 in any action or proceeding.
235 [Landowners Presumed to Control Delivery.]
236 [(V)] (5) In any action upon such marketing contracts, it shall be conclusively
237 presumed that a landowner or landlord or lessor is able to control the delivery of products
238 produced on his land by tenants or others, whose tenancy or possession or work on such land or
239 the terms of whose tenancy or possession or labor thereon were created or changed after
240 execution by the landowner or landlord or lessor of such a marketing contract; and in such
241 actions, the foregoing remedies for nondelivery or breach shall lie and be enforceable against
242 such landowner, landlord, or lessor.
243 [Filing Contract.]
244 [(VI)] (6) (a) The association may file contracts to sell agricultural products to or
245 through the association in the office of the county recorder of the county in which the products
246 are produced.
247 (b) If the association has uniform contracts with more than one member in any county,
248 it may, in lieu of filing the original contracts, file the affidavit of its president, vice president or
249 secretary, containing or having attached thereto:
250 [(a)] (i) a true copy of the uniform contract entered into with its members producing
251 such product in that county; and
252 [(b)] (ii) the names of the members who have executed such contract and a description
253 of the land on which the product is produced, if such description is contained in the contract.

254 (c) The association may file from time to time thereafter affidavits containing revised
255 or supplementary lists of the members producing such product in that county without setting
256 forth therein a copy of the uniform contract but referring to the filed or recorded copy thereof.
257 (d) All affidavits filed under this section shall state in substance that they are filed
258 pursuant to the provisions of this section.
259 (e) The county recorder shall file such affidavits and make endorsements thereon and
260 record and make entries thereof in the same manner as is required by law in the case of chattel
261 mortgages, and he shall compile and make available for public inspection a convenient index
262 containing the names of all signers of such contracts, and collect for his services hereunder the
263 same fees as for chattel mortgages.
264 (f) The filing of any such contract, or such affidavit, shall constitute constructive notice
265 of the contents thereof, and of the association's title or right to the product embraced in such
266 contract, to all subsequent purchasers, encumbrancers, creditors, and to all persons dealing with
267 the members with reference to such product.
268 (g) No title, right, or lien of any kind shall be acquired to or on the product thereafter
269 except through the association or with its consent, or subject to its rights; and the association
270 may recover the possession of such property from any and all subsequent purchasers,
271 encumbrancers, and creditors, and those claiming under them, in whose possession the same
272 may be found, by any appropriate action for the recovery of personal property, and it may have
273 relief by injunction and for damages.
274 Section 3. 3-1-41 is amended to read:
275 3-1-41. Domestic or foreign corporations or associations -- Plan of merger --
276 Articles of merger -- Certificate of merger.
277 (1) (a) A Utah cooperative association owning 90% of the outstanding shares of each
278 class of a foreign or domestic corporation or association may merge such other corporation or
279 association into itself without the approval of the shareholders or members of either
280 corporation or association.
281 (b) The governing board shall, by resolution, approve a plan of merger setting forth:

282 [(a)] (i) the name of the subsidiary corporation or association and the name of the
283 corporation or association owning 90% or more of its shares, which is hereafter designated as
284 the surviving corporation or association; and
285 [(b)] (ii) the manner and basis for converting each class of shares of the subsidiary
286 corporation or association into shares, obligations, or other securities of the surviving
287 corporation or association, or of any other corporation or association, in whole or in part, into
288 cash or other property.
289 (c) A copy of the plan of merger shall be mailed to each record member or shareholder
290 of the subsidiary corporation or association.
291 (2) (a) Articles of merger shall be executed in triplicate by the president or vice
292 president and the secretary or an assistant secretary of the surviving corporation or association
293 and verified by one of its officers.
294 (b) The articles of merger shall set forth:
295 [(a)] (i) the plan of merger;
296 [(b)] (ii) the number of outstanding shares of each class of the subsidiary corporation or
297 association and the number of such shares of each class owned by the surviving corporation or
298 association; and
299 [(c)] (iii) the date a copy of the plan of merger was mailed to shareholders or members
300 of the subsidiary corporation or association.
301 (3) (a) Triplicate originals of the articles of merger shall be delivered to the Division of
302 Corporations and Commercial Code on the 30th day after mailing a copy of the plan to
303 shareholders or members.
304 (b) If that division finds such articles conform to law and that all fees prescribed by this
305 act have been paid, it shall:
306 [(a)] (i) endorse on each of said triplicate originals the word "filed," together with the
307 month, date, and year of filing;
308 [(b)] (ii) file one of the triplicate originals with the Division of Corporations and
309 Commercial Code and forward another triplicate original to the state Department of

310 Agriculture and Food; and
311 [(c)] (iii) issue a certificate of merger with the remaining triplicate original affixed.
312 (c) The certificate of merger, together with a triplicate original of the articles of merger
313 affixed by the Division of Corporations and Commercial Code, shall be returned to the
314 surviving corporation or association or its representative.
315 (4) The merger of a foreign corporation or association into a Utah cooperative
316 association shall conform to the laws of the state under which each such foreign corporation or
317 association is organized.
318 Section 4. Section 7-1-104 is amended to read:
319 7-1-104. Exemptions from application of title.
320 (1) This title does not apply to:
321 [(1)] (a) investment companies registered under the Investment Company Act of 1940,
322 15 U.S.C. Sec. 80a-1 et seq.;
323 [(2)] (b) securities brokers and dealers registered pursuant to [the]:
324 (i) Title 61, Chapter 1, Utah Uniform Securities Act; or
325 (ii) the federal Securities Exchange Act of 1934, 15 U.S.C. Sec. 78a et seq.;
326 [(3)] (c) depository or other institutions performing transaction account services,
327 including third party transactions, in connection with:
328 (i) the purchase and redemption of investment company shares[,]; or [in connection
329 with]
330 (ii) access to a margin or cash securities account maintained by a person identified in
331 Subsection [(2)] (1)(b); or
332 [(4)] (d) insurance companies selling interests in an investment company or "separate
333 account" and subject to regulation by the Utah Insurance Department.
334 (2) (a) An institution, organization, or person is not exempt from this title if, within
335 this state, it holds itself out to the public as receiving and holding deposits from residents of
336 this state, whether evidenced by a certificate, promissory note, or otherwise.
337 (b) An investment company is not exempt from this title unless [it] the investment

338 company is registered with the United States Securities and Exchange Commission under the
339 Investment Company Act of 1940, 15 U.S.C. Sec. 80a-1 et seq., and is advised by an
340 investment advisor: [(a)]
341 (i) which is registered with the United States Securities and Exchange Commission
342 under the Investment Advisors Act of 1940, 15 U.S.C. Sec. 80b-1 et seq.; and [(b)]
343 (ii) which advises investment companies and other accounts with a combined value of
344 at least $50,000,000.
345 Section 5. Section 7-7-12 is amended to read:
346 7-7-12. Inspection of books and records -- Confidentiality -- Communication
347 between members or stockholders.
348 (1) Every member, stockholder, or borrower of an association shall have the right to
349 inspect, upon paying any costs of retrieval or reproduction and upon reasonable notice and
350 during regular business hours:
351 (a) the books and records of the association which do not contain any confidential
352 information relating to a loan, savings account, or voting rights of another member,
353 stockholder, or borrower; and
354 (b) such books and records of the association as pertain to [his] the member's,
355 stockholder's, or borrower's own loan, savings account, or the determination of [his] the
356 member's, stockholder's, or borrower's voting rights. [Otherwise,]
357 (2) Except as provided in Subsection (1), the right of inspection and examination of the
358 books, accounts, and records shall be limited to:
359 [(i)] (a) the commissioner and supervisor, or their duly authorized representatives;
360 [(ii)] (b) persons authorized to act for the association;
361 [(iii)] (c) any federal or state instrumentality or agency authorized to inspect or
362 examine the books and records of an insured association;
363 [(iv)] (d) the Office of Thrift Supervision, the Federal Deposit Insurance Corporation,
364 or their successor agencies; and
365 [(v)] (e) any person acting under authority of a court of competent jurisdiction.

366 [(2)] (3) Except as otherwise stated in this section, the books and records pertaining to
367 the accounts, loans, and voting rights of savers, borrowers, members, and stockholders shall be
368 kept confidential by the association, its directors, officers, and employees, and by the
369 commissioner, the supervisor, and their examiners and representatives, unless disclosure is
370 expressly or impliedly authorized by the saver, borrower, member, or stockholder.
371 [(3)] (4) Each member or stockholder of an association has the right to communicate
372 with other members or stockholders of the same association with reference to any question
373 pending or to be presented for consideration at a meeting of the members or stockholders. A
374 member or stockholder, in order to communicate with other members or stockholders, shall
375 submit to the association a request, subscribed by [him] the member or stockholder, which
376 includes:
377 (a) [his] the member's or stockholder's full name and address;
378 (b) the nature and extent of [his] the member's or stockholder's interest in the
379 association at the time [his] the member's or stockholder's application for communication is
380 made;
381 (c) a statement of the reasons for and purposes of the communication and that the
382 communication is not for any reason other than the business welfare of the association;
383 (d) a copy of the communication; and
384 (e) if the communication concerns a question to be raised at a meeting of the members
385 or stockholders of the association, the date of the meeting at which the matter will be
386 presented.
387 [(4)] (5) Within ten days after receipt of the request referred to in Subsection [(3)] (4)
388 the association shall notify the requesting member or stockholder of:
389 (a) the approximate number of the members or stockholders and the estimated amount
390 of the reasonable costs and expenses of mailing the communication; or
391 (b) its determination to refuse the request and the specific reasons for its refusal,
392 including its determination whether or not the request has been made for a proper purpose.
393 (6) Unless the association has refused the request referred to in Subsection (5), [it] the

394 association shall, within seven days after receipt of the sum specified by it under this
395 [subsection] Subsection (6) and sufficient copies of the communication, mail the
396 communication to all its members or stockholders.
397 [(5)] (7) If a request referred to in Subsection [(3)] (4) is refused by an association, the
398 requesting member or stockholder may submit [his] the member's or stockholder's request and
399 the refusal [thereof] of the request to the supervisor for review. The supervisor may issue an
400 order denying the request or, if [he] the supervisor finds the request is not for any reason other
401 than the business welfare of the association and is in all other respects proper, granting the
402 request and directing the association to mail the communication to all its members or
403 stockholders in accordance with the provisions of [Subsection (4)] Subsections (5) and (6).
404 [(6)] (8) Insofar as the provisions of this section are not inconsistent with federal law,
405 [such provisions] this section shall apply to a federal [associations] association whose home
406 offices are located in this state, and to the members or stockholders [thereof] of that federal
407 association except that any review of a refusal by an association under Subsection [(4)] (5)
408 shall be tendered to the Office of Thrift Supervision or successor federal agency in the case of a
409 federal association.
410 Section 6. Section 10-8-2 is amended to read:
411 10-8-2. Appropriations -- Acquisition and disposal of property -- Municipal
412 authority -- Corporate purpose -- Procedure -- Notice of intent to acquire real property.
413 (1) (a) A municipal legislative body may:
414 (i) appropriate money for corporate purposes only;
415 (ii) provide for payment of debts and expenses of the corporation;
416 (iii) subject to Subsections (4) and (5), purchase, receive, hold, sell, lease, convey, and
417 dispose of real and personal property for the benefit of the municipality, whether the property is
418 within or without the municipality's corporate boundaries;
419 (iv) improve, protect, and do any other thing in relation to this property that an
420 individual could do; and
421 (v) subject to Subsection (2) and after first holding a public hearing, authorize

422 municipal services or other nonmonetary assistance to be provided to or waive fees required to
423 be paid by a nonprofit entity, whether or not the municipality receives consideration in return.
424 (b) A municipality may:
425 (i) furnish all necessary local public services within the municipality;
426 (ii) purchase, hire, construct, own, maintain and operate, or lease public utilities
427 located and operating within and operated by the municipality; and
428 (iii) subject to Subsection (1)(c), acquire by eminent domain, or otherwise, property
429 located inside or outside the corporate limits of the municipality and necessary for any of the
430 purposes stated in Subsections (1)(b)(i) and (ii), subject to restrictions imposed by Title 78,
431 Chapter 34, Eminent Domain, and general law for the protection of other communities.
432 (c) Each municipality that intends to acquire property by eminent domain under
433 Subsection (1)(b) shall, upon the first contact with the owner of the property sought to be
434 acquired, deliver to the owner a copy of a booklet or other materials provided by the property
435 rights ombudsman, created under Section [ 63-34-13 ] 13-43-201 , dealing with the property
436 owner's rights in an eminent domain proceeding.
437 (d) Subsection (1)(b) may not be construed to diminish any other authority a
438 municipality may claim to have under the law to acquire by eminent domain property located
439 inside or outside the municipality.
440 (2) Services or assistance provided pursuant to Subsection (1)(a)(v) is not subject to the
441 provisions of Subsection (3). The total amount of services or other nonmonetary assistance
442 provided or fees waived under Subsection (1)(a)(v) in any given fiscal year may not exceed 1%
443 of the municipality's budget for that fiscal year.
444 (3) It is considered a corporate purpose to appropriate money for any purpose that, in
445 the judgment of the municipal legislative body, provides for the safety, health, prosperity,
446 moral well-being, peace, order, comfort, or convenience of the inhabitants of the municipality
447 subject to the following:
448 (a) The net value received for any money appropriated shall be measured on a
449 project-by-project basis over the life of the project.

450 (b) The criteria for a determination under this Subsection (3) shall be established by the
451 municipality's legislative body. A determination of value received, made by the municipality's
452 legislative body, shall be presumed valid unless it can be shown that the determination was
453 arbitrary, capricious, or illegal.
454 (c) The municipality may consider intangible benefits received by the municipality in
455 determining net value received.
456 (d) Prior to the municipal legislative body making any decision to appropriate any
457 funds for a corporate purpose under this section, a public hearing shall be held. Notice of the
458 hearing shall be published in a newspaper of general circulation at least 14 days prior to the
459 date of the hearing, or, if there is no newspaper of general circulation, by posting notice in at
460 least three conspicuous places within the municipality for the same time period.
461 (e) A study shall be performed before notice of the public hearing is given and shall be
462 made available at the municipality for review by interested parties at least 14 days immediately
463 prior to the public hearing, setting forth an analysis and demonstrating the purpose for the
464 appropriation. In making the study, the following factors shall be considered:
465 (i) what identified benefit the municipality will receive in return for any money or
466 resources appropriated;
467 (ii) the municipality's purpose for the appropriation, including an analysis of the way
468 the appropriation will be used to enhance the safety, health, prosperity, moral well-being,
469 peace, order, comfort, or convenience of the inhabitants of the municipality; and
470 (iii) whether the appropriation is necessary and appropriate to accomplish the
471 reasonable goals and objectives of the municipality in the area of economic development, job
472 creation, affordable housing, blight elimination, job preservation, the preservation of historic
473 structures and property, and any other public purpose.
474 (f) An appeal may be taken from a final decision of the municipal legislative body, to
475 make an appropriation. The appeal shall be filed within 30 days after the date of that decision,
476 to the district court. Any appeal shall be based on the record of the proceedings before the
477 legislative body. A decision of the municipal legislative body shall be presumed to be valid

478 unless the appealing party shows that the decision was arbitrary, capricious, or illegal.
479 (g) The provisions of this Subsection (3) apply only to those appropriations made after
480 May 6, 2002.
481 (h) This section shall only apply to appropriations not otherwise approved pursuant to
482 Title 10, Chapter 5, Uniform Fiscal Procedures Act for Utah Towns, or Title 10, Chapter 6,
483 Uniform Fiscal Procedures Act for Utah Cities.
484 (4) (a) Before a municipality may dispose of a significant parcel of real property, the
485 municipality shall:
486 (i) provide reasonable notice of the proposed disposition at least 14 days before the
487 opportunity for public comment under Subsection (4)(a)(ii); and
488 (ii) allow an opportunity for public comment on the proposed disposition.
489 (b) Each municipality shall, by ordinance, define what constitutes:
490 (i) a significant parcel of real property for purposes of Subsection (4)(a); and
491 (ii) reasonable notice for purposes of Subsection (4)(a)(i).
492 (5) (a) Except as provided in Subsection (5)(d), each municipality intending to acquire
493 real property for the purpose of expanding the municipality's infrastructure or other facilities
494 used for providing services that the municipality offers or intends to offer shall provide written
495 notice, as provided in this Subsection (5), of its intent to acquire the property if:
496 (i) the property is located:
497 (A) outside the boundaries of the municipality; and
498 (B) in a county of the first or second class; and
499 (ii) the intended use of the property is contrary to:
500 (A) the anticipated use of the property under the general plan of the county in whose
501 unincorporated area or the municipality in whose boundaries the property is located; or
502 (B) the property's current zoning designation.
503 (b) Each notice under Subsection (5)(a) shall:
504 (i) indicate that the municipality intends to acquire real property;
505 (ii) identify the real property; and

506 (iii) be sent to:
507 (A) each county in whose unincorporated area and each municipality in whose
508 boundaries the property is located; and
509 (B) each affected entity.
510 (c) A notice under this Subsection (5) is a protected record as provided in Subsection
511 63-2-304 (7).
512 (d) (i) The notice requirement of Subsection (5)(a) does not apply if the municipality
513 previously provided notice under Section 10-9a-203 identifying the general location within the
514 municipality or unincorporated part of the county where the property to be acquired is located.
515 (ii) If a municipality is not required to comply with the notice requirement of
516 Subsection (5)(a) because of application of Subsection (5)(d)(i), the municipality shall provide
517 the notice specified in Subsection (5)(a) as soon as practicable after its acquisition of the real
518 property.
519 Section 7. Section 10-9a-801 is amended to read:
520 10-9a-801. No district court review until administrative remedies exhausted --
521 Time for filing -- Tolling of time -- Standards governing court review -- Record on review
522 -- Staying of decision.
523 (1) No person may challenge in district court a municipality's land use decision made
524 under this chapter, or under a regulation made under authority of this chapter, until that person
525 has exhausted the person's administrative remedies as provided in Part 7, Appeal Authority and
526 Variances, if applicable.
527 (2) (a) Any person adversely affected by a final decision made in the exercise of or in
528 violation of the provisions of this chapter may file a petition for review of the decision with the
529 district court within 30 days after the local land use decision is final.
530 (b) (i) The time under Subsection (2)(a) to file a petition is tolled from the date a
531 property owner files a request for arbitration of a constitutional taking issue with the property
532 rights ombudsman under Section [ 63-34-13 ] 13-43-204 until 30 days after:
533 (A) the arbitrator issues a final award; or

534 (B) the property rights ombudsman issues a written statement under Subsection
535 [ 63-34-13 (4)] 13-43-204 (3)(b) declining to arbitrate or to appoint an arbitrator.
536 (ii) A tolling under Subsection (2)(b)(i) operates only as to the specific constitutional
537 taking issue that is the subject of the request for arbitration filed with the property rights
538 ombudsman by a property owner.
539 (iii) A request for arbitration filed with the property rights ombudsman after the time
540 under Subsection (2)(a) to file a petition has expired does not affect the time to file a petition.
541 (3) (a) The courts shall:
542 (i) presume that a decision, ordinance, or regulation made under the authority of this
543 chapter is valid; and
544 (ii) determine only whether or not the decision, ordinance, or regulation is arbitrary,
545 capricious, or illegal.
546 (b) A decision, ordinance, or regulation involving the exercise of legislative discretion
547 is valid if the decision, ordinance, or regulation is reasonably debatable and not illegal.
548 (c) A final decision of a land use authority or an appeal authority is valid if the decision
549 is supported by substantial evidence in the record and is not arbitrary, capricious, or illegal.
550 (d) A determination of illegality requires a determination that the decision, ordinance,
551 or regulation violates a law, statute, or ordinance in effect at the time the decision was made or
552 the ordinance or regulation adopted.
553 (4) The provisions of Subsection (2)(a) apply from the date on which the municipality
554 takes final action on a land use application for any adversely affected third party, if the
555 municipality conformed with the notice provisions of Part 2, Notice, or for any person who had
556 actual notice of the pending decision.
557 (5) If the municipality has complied with Section 10-9a-205 , a challenge to the
558 enactment of a land use ordinance or general plan may not be filed with the district court more
559 than 30 days after the enactment.
560 (6) The petition is barred unless it is filed within 30 days after the appeal authority's
561 decision is final.

562 (7) (a) The land use authority or appeal authority, as the case may be, shall transmit to
563 the reviewing court the record of its proceedings, including its minutes, findings, orders, and, if
564 available, a true and correct transcript of its proceedings.
565 (b) If the proceeding was tape recorded, a transcript of that tape recording is a true and
566 correct transcript for purposes of this Subsection (7).
567 (8) (a) (i) If there is a record, the district court's review is limited to the record provided
568 by the land use authority or appeal authority, as the case may be.
569 (ii) The court may not accept or consider any evidence outside the record of the land
570 use authority or appeal authority, as the case may be, unless that evidence was offered to the
571 land use authority or appeal authority, respectively, and the court determines that it was
572 improperly excluded.
573 (b) If there is no record, the court may call witnesses and take evidence.
574 (9) (a) The filing of a petition does not stay the decision of the land use authority or
575 authority appeal authority, as the case may be.
576 (b) (i) Before filing a petition under this section or a request for mediation or
577 arbitration of a constitutional taking issue under Section [ 63-34-13 ] 13-43-204 , the aggrieved
578 party may petition the appeal authority to stay its decision.
579 (ii) Upon receipt of a petition to stay, the appeal authority may order its decision stayed
580 pending district court review if the appeal authority finds it to be in the best interest of the
581 municipality.
582 (iii) After a petition is filed under this section or a request for mediation or arbitration
583 of a constitutional taking issue is filed under Section [ 63-34-13 ] 13-43-204 , the petitioner may
584 seek an injunction staying the appeal authority's decision.
585 Section 8. Section 11-13-314 is amended to read:
586 11-13-314. Eminent domain authority of certain commercial project entities.
587 (1) (a) Subject to Subsection (2), a commercial project entity that existed as a project
588 entity before January 1, 1980 may, with respect to a project or facilities providing additional
589 project capacity in which the commercial project entity has an interest, acquire property within

590 the state through eminent domain, subject to restrictions imposed by Title 78, Chapter 34,
591 Eminent Domain, and general law for the protection of other communities.
592 (b) Subsection (1)(a) may not be construed to:
593 (i) give a project entity the authority to acquire water rights by eminent domain; or
594 (ii) diminish any other authority a project entity may claim to have under the law to
595 acquire property by eminent domain.
596 (2) Each project entity that intends to acquire property by eminent domain under
597 Subsection (1)(a) shall, upon the first contact with the owner of the property sought to be
598 acquired, deliver to the owner a copy of a booklet or other materials provided by the property
599 rights ombudsman, created under Section [ 63-34-13 ] 13-43-201 , dealing with the property
600 owner's rights in an eminent domain proceeding.
601 Section 9. 13-5-9 is amended to read:
602 13-5-9. Transactions involving more than one item -- Limitation on quantity of
603 article or product sold or offered for sale to any one customer.
604 (1) For the purpose of preventing evasion of this [act] chapter in all sales involving
605 more than one item or commodity the vendor's or distributor's selling price shall not be below
606 the cost of all articles, products, and commodities included in such transactions. Each article,
607 product, or commodity individually advertised or offered for sale, shall be individually subject
608 to the requirements of Section 13-5-7 , when sold with other articles, products, or commodities.
609 (2) Under this section, proof of limitation of the quantity of any article or product sold
610 or offered for sale to any one customer of a quantity less than the entire supply thereof owned
611 or possessed by the seller or which he is otherwise authorized to sell at the place of such sale or
612 offering for sale, together with proof that the price at which the article or product is so sold or
613 offered for sale is in fact below its cost, raises a presumption of the purpose or the intent of the
614 sale being to injure competitors or destroy competition, and is unlawful. This section applies
615 only to sales by persons conducting a retail business, the principal part of which involves the
616 resale to consumers of commodities purchased or acquired for that purpose, as distinguished
617 from persons principally engaged in the sale to consumers of commodities of their own

618 production or manufacture.
619 (3) There shall be no circumvention of the provisions of this [act] chapter relating to
620 the quantity of articles or products any one customer may purchase by requiring presentation of
621 coupons, certificates, special purchase authorizations, or any other procedures designed in any
622 way to limit quantity of purchases as provided herein.
623 Section 10. 13-11a-3 is amended to read:
624 13-11a-3. Deceptive trade practices enumerated -- Records to be kept -- Defenses.
625 (1) Deceptive trade practices occur when, in the course of his business, vocation, or
626 occupation:
627 (a) A person passes off goods or services as those of another.
628 (b) A person causes likelihood of confusion or of misunderstanding as to the source,
629 sponsorship, approval, or certification of goods or services.
630 (c) A person causes likelihood of confusion or of misunderstanding as to affiliation,
631 connection, association with, or certification by another.
632 (d) A person uses deceptive representations or designations of geographic origin in
633 connection with goods or services.
634 (e) A person represents that goods or services have sponsorship, approval,
635 characteristics, ingredients, uses, benefits, or qualities that they do not have or that a person has
636 a sponsorship, approval, status, affiliation, or connection that he does not have.
637 (f) A person represents that goods are original or new if they are deteriorated, altered,
638 reconditioned, reclaimed, used, or second-hand.
639 (g) A person represents that goods or services are of a particular standard, quality, or
640 grade, or that goods are of a particular style or model, if they are of another.
641 (h) A person disparages the goods, services, or business of another by false or
642 misleading representation of fact.
643 (i) A person advertises goods or services or the price of goods and services with intent
644 not to sell them as advertised. If specific advertised prices will be in effect for less than one
645 week from the advertisement date, the advertisement must clearly and conspicuously disclose

646 the specific time period during which the prices will be in effect.
647 (j) A person advertises goods or services with intent not to supply a reasonable
648 expectable public demand, unless:
649 (i) the advertisement clearly and conspicuously discloses a limitation of quantity; or
650 (ii) the person issues rainchecks for the advertised goods or services.
651 (k) A person makes false or misleading statements of fact concerning the reasons for,
652 existence of, or amounts of price reductions.
653 (l) A person makes a comparison between his own sale or discount price and a
654 competitor's nondiscounted price without clearly and conspicuously disclosing that fact.
655 (m) A person, without clearly and conspicuously disclosing the date of the price
656 assessment makes a price comparison with the goods of another based upon a price assessment
657 performed more than seven days prior to the date of the advertisement or uses in an
658 advertisement the results of a price assessment performed more than seven days prior to the
659 date of the advertisement without disclosing, in a print ad, the date of the price assessment, or
660 in a radio or television ad, the time frame of the price assessment.
661 (n) A person advertises or uses in a price assessment or comparison a price that is not
662 his own unless this fact is:
663 (i) clearly and conspicuously disclosed; and
664 (ii) the representation of the price is accurate. With respect to the price of a
665 competitor, the price must be one at which the competitor offered the goods or services for sale
666 in the product area at the time of the price assessment, and must not be an isolated price.
667 (o) A person represents as independent an audit, accounting, price assessment, or
668 comparison of prices of goods or services, when such audit, accounting, price assessment, or
669 comparison is not independent. Such audit, accounting, price assessment, or comparison shall
670 be independent if the price assessor randomly selects the goods to be compared, and the time
671 and place of such comparison, and no agreement or understanding exists between the supplier
672 and the price assessor that could cause the results of the assessment to be fraudulent or
673 deceptive. The independence of such audit, accounting, or price comparison is not invalidated

674 merely because the advertiser pays a fee therefor, but is invalidated if the audit, accounting, or
675 price comparison is done by a full or part time employee of the advertiser.
676 (p) A person represents, in an advertisement of a reduction from the supplier's own
677 prices, that the reduction is from a regular price, when the former price is not a regular price as
678 defined in Subsection 13-11a-2 (12).
679 (q) A person advertises a price comparison or the result of a price assessment or
680 comparison that uses, in any way, an identified competitor's price without clearly and
681 conspicuously disclosing the identity of the price assessor and any relationship between the
682 price assessor and the supplier. Examples of disclosure complying with this section are: "Price
683 assessment performed by Store Z"; "Price assessment performed by a certified public
684 accounting firm"; "Price assessment performed by employee of Store Y."
685 (r) A person makes a price comparison between a category of the supplier's goods and
686 the same category of the goods of another, without randomly selecting the individual goods or
687 services upon whose prices the comparison is based. For the purposes of this subsection,
688 goods or services are randomly selected when the supplier has no advance knowledge of what
689 goods and services will be surveyed by the price assessor, and when the supplier certifies its
690 lack of advance knowledge by an affidavit to be retained in the supplier's records for one year.
691 (s) A person makes a comparison between similar but nonidentical goods or services
692 unless the nonidentical goods or services are of essentially similar quality to the advertised
693 goods or services or the dissimilar aspects are clearly and conspicuously disclosed in the
694 advertisements.
695 (i) It is prima facie evidence of compliance with [this] Subsection (1)(s) if:
696 [(i)] (A) the goods compared are substantially the same size; and
697 [(ii)] (B) the goods compared are of substantially the same quality, which may include
698 similar models of competing brands of goods, or goods made of substantially the same
699 materials and made with substantially the same workmanship.
700 (ii) It is prima facie evidence of a deceptive comparison under [this section] Subsection
701 (1)(s) when the prices of brand name goods and generic goods are compared.

702 (t) A person engages in any other conduct which similarly creates a likelihood of
703 confusion or of misunderstanding.
704 (2) Any supplier who makes a comparison with a competitor's price in advertising shall
705 maintain for a period of one year records that disclose the factual basis for such price
706 comparisons and from which the validity of such claim can be established.
707 (3) It [shall be] is a defense to any claim of false or deceptive price representations
708 under this chapter that a person:
709 (a) has no knowledge that the represented price is not genuine; and
710 (b) has made reasonable efforts to determine whether the represented price is genuine.
711 (4) Subsections (1)(m) and (q) do not apply to price comparisons made in catalogs in
712 which a supplier compares the price of a single item of its goods or services with those of
713 another.
714 (5) In order to prevail in an action under this chapter, a complainant need not prove
715 competition between the parties or actual confusion or misunderstanding.
716 (6) This chapter does not affect unfair trade practices otherwise actionable at common
717 law or under other statutes of this state.
718 Section 11. 13-21-7 is amended to read:
719 13-21-7. Written contracts required -- Contents -- Notice of cancellation of
720 contract.
721 (1) Each contract between the buyer and a credit services organization for the purchase
722 of the services of the credit services organization shall be in writing, dated, signed by the buyer,
723 and include all of the following:
724 (a) a conspicuous statement in bold type, in immediate proximity to the space reserved
725 for the signature of the buyer, as follows: "You, the buyer, may cancel this contract at any time
726 prior to midnight of the fifth day after the date of the transaction. See the attached notice of
727 cancellation form for an explanation of this right.";
728 (b) the terms and conditions of payment, including the total of all payments to be made
729 by the buyer, whether to the credit services organization or to some other person;

730 (c) a full and detailed description of the services to be performed by the credit services
731 organization for the buyer, including all guarantees and all promises of full or partial refunds,
732 and the estimated date by which the services are to be performed, or estimated length of time
733 for performing the services; and
734 (d) the credit services organization's principal business address and the name and
735 address of its agent, in Utah, authorized to receive service of process.
736 (2) The contract shall be accompanied by a completed form in duplicate, captioned
737 "Notice of Cancellation," which shall be attached to the contract and easily detachable, and
738 which shall contain in bold type the following statement written in the same language as used
739 in the contract:
740 "Notice of Cancellation
741 You may cancel this contract, without any penalty or obligation, within five days from
742 the date the contract is signed.
743 If you cancel, any payment made by you under this contract will be returned within 10
744 days following receipt by the seller of your cancellation notice.
745 To cancel this contract, mail or deliver a signed dated copy of this cancellation notice,
746 or any other written notice, to _____(name of seller)_____at _____(address of seller)_____
747 (place of business)_____ not later than midnight _____(date)_____.
748 I hereby cancel this transaction.
749 _______________(date)
750

__________________________________________________________

751 (purchaser's signature)"
752 (3) The credit services organization shall give to the buyer a copy of the completed
753 contract and all other documents the credit services organization requires the buyer to sign at
754 the time they are signed.
755 Section 12. Section 16-6a-822 is amended to read:
756 16-6a-822. General standards of conduct for directors and officers.
757 (1) (a) A director shall discharge the director's duties as a director, including the

758 director's duties as a member of a committee of the board, in accordance with Subsection (2).
759 (b) An officer with discretionary authority shall discharge the officer's duties under that
760 authority in accordance with Subsection (2).
761 (2) A director or an officer described in Subsection (1) shall discharge the director or
762 officer's duties:
763 (a) in good faith;
764 (b) with the care an ordinarily prudent person in a like position would exercise under
765 similar circumstances; and
766 (c) in a manner the director or officer reasonably believes to be in the best interests of
767 the nonprofit corporation.
768 (3) In discharging duties, a director or officer is entitled to rely on information,
769 opinions, reports, or statements, including financial statements and other financial data, if
770 prepared or presented by:
771 (a) one or more officers or employees of the nonprofit corporation whom the director
772 or officer reasonably believes to be reliable and competent in the matters presented;
773 (b) legal counsel, a public accountant, or another person as to matters the director or
774 officer reasonably believes are within the person's professional or expert competence;
775 (c) religious authorities or ministers, priests, rabbis, or other persons:
776 (i) whose position or duties in the nonprofit corporation, or in a religious organization
777 with which the nonprofit corporation is affiliated, the director or officer believes justify
778 reliance and confidence; and
779 (ii) who the director or officer believes to be reliable and competent in the matters
780 presented; or
781 (d) in the case of a director, a committee of the board of directors of which the director
782 is not a member if the director reasonably believes the committee merits confidence.
783 (4) A director or officer is not acting in good faith if the director or officer has
784 knowledge concerning the matter in question that makes reliance otherwise permitted by
785 Subsection (3) unwarranted.

786 (5) A director, regardless of title, may not be considered to be a trustee with respect to
787 any property held or administered by the nonprofit corporation including property that may be
788 subject to restrictions imposed by the donor or transferor of the property.
789 (6) A director or officer is not liable to the nonprofit corporation, its members, or any
790 conservator or receiver, or any assignee or successor-in-interest of the nonprofit corporation or
791 member, for any action taken, or any failure to take any action, as an officer or director, as the
792 case may be, unless:
793 (a) the director or officer has breached or failed to perform the duties of the office as
794 set forth in this section; and
795 (b) the breach or failure to perform constitutes:
796 (i) willful misconduct; or
797 (ii) intentional infliction of harm on:
798 (A) the nonprofit corporation; or
799 (B) the members of the nonprofit corporation; or
800 (iii) [the breach or failure to perform constitutes] gross negligence.
801 Section 13. Section 17-27a-801 is amended to read:
802 17-27a-801. No district court review until administrative remedies exhausted --
803 Time for filing -- Tolling of time -- Standards governing court review -- Record on review
804 -- Staying of decision.
805 (1) No person may challenge in district court a county's land use decision made under
806 this chapter, or under a regulation made under authority of this chapter, until that person has
807 exhausted the person's administrative remedies as provided in Part 7, Appeal Authority and
808 Variances, if applicable.
809 (2) (a) Any person adversely affected by a final decision made in the exercise of or in
810 violation of the provisions of this chapter may file a petition for review of the decision with the
811 district court within 30 days after the local land use decision is final.
812 (b) (i) The time under Subsection (2)(a) to file a petition is tolled from the date a
813 property owner files a request for arbitration of a constitutional taking issue with the property

814 rights ombudsman under Section [ 63-34-13 ] 13-43-204 until 30 days after:
815 (A) the arbitrator issues a final award; or
816 (B) the property rights ombudsman issues a written statement under Subsection
817 [ 63-34-13 (4)] 13-43-204 (3)(b) declining to arbitrate or to appoint an arbitrator.
818 (ii) A tolling under Subsection (2)(b)(i) operates only as to the specific constitutional
819 taking issue that is the subject of the request for arbitration filed with the property rights
820 ombudsman by a property owner.
821 (iii) A request for arbitration filed with the property rights ombudsman after the time
822 under Subsection (2)(a) to file a petition has expired does not affect the time to file a petition.
823 (3) (a) The courts shall:
824 (i) presume that a decision, ordinance, or regulation made under the authority of this
825 chapter is valid; and
826 (ii) determine only whether or not the decision, ordinance, or regulation is arbitrary,
827 capricious, or illegal.
828 (b) A decision, ordinance, or regulation involving the exercise of legislative discretion
829 is valid if the decision, ordinance, or regulation is reasonably debatable and not illegal.
830 (c) A final decision of a land use authority or an appeal authority is valid if the decision
831 is supported by substantial evidence in the record and is not arbitrary, capricious, or illegal.
832 (d) A determination of illegality requires a determination that the decision, ordinance,
833 or regulation violates a law, statute, or ordinance in effect at the time the decision was made or
834 the ordinance or regulation adopted.
835 (4) The provisions of Subsection (2)(a) apply from the date on which the county takes
836 final action on a land use application for any adversely affected third party, if the county
837 conformed with the notice provisions of Part 2, Notice, or for any person who had actual notice
838 of the pending decision.
839 (5) If the county has complied with Section 17-27a-205 , a challenge to the enactment
840 of a land use ordinance or general plan may not be filed with the district court more than 30
841 days after the enactment.

842 (6) The petition is barred unless it is filed within 30 days after land use authority or the
843 appeal authority's decision is final.
844 (7) (a) The land use authority or appeal authority, as the case may be, shall transmit to
845 the reviewing court the record of its proceedings, including its minutes, findings, orders and, if
846 available, a true and correct transcript of its proceedings.
847 (b) If the proceeding was tape recorded, a transcript of that tape recording is a true and
848 correct transcript for purposes of this Subsection (7).
849 (8) (a) (i) If there is a record, the district court's review is limited to the record provided
850 by the land use authority or appeal authority, as the case may be.
851 (ii) The court may not accept or consider any evidence outside the record of the land
852 use authority or appeal authority, as the case may be, unless that evidence was offered to the
853 land use authority or appeal authority, respectively, and the court determines that it was
854 improperly excluded.
855 (b) If there is no record, the court may call witnesses and take evidence.
856 (9) (a) The filing of a petition does not stay the decision of the land use authority or
857 appeal authority, as the case may be.
858 (b) (i) Before filing a petition under this section or a request for mediation or
859 arbitration of a constitutional taking issue under Section [ 63-34-13 ] 13-43-204 , the aggrieved
860 party may petition the appeal authority to stay its decision.
861 (ii) Upon receipt of a petition to stay, the appeal authority may order its decision stayed
862 pending district court review if the appeal authority finds it to be in the best interest of the
863 county.
864 (iii) After a petition is filed under this section or a request for mediation or arbitration
865 of a constitutional taking issue is filed under Section [ 63-34-13 ] 13-43-204 , the petitioner may
866 seek an injunction staying the appeal authority's decision.
867 Section 14. Section 17A-2-412 is amended to read:
868 17A-2-412. Service area considered body corporate -- Powers.
869 (1) Upon its creation, a county service area is a body corporate and politic and a

870 quasi-municipal public corporation.
871 (2) A county service area may:
872 (a) exercise all powers of eminent domain possessed by counties in Utah in the manner
873 provided by law for the exercise of eminent domain power by counties;
874 (b) sue and be sued;
875 (c) enter into contracts considered desirable by the board of trustees of the service area
876 to carry out the functions of the service area including contracts with municipal corporations,
877 counties or other public corporations, county service areas or districts;
878 (d) impose and collect charges or fees for any commodities, services, or facilities
879 afforded by the service area to its consumers and pledge all or any part of the revenues so
880 derived to the payment of any bonds of the service area, whether the bonds are issued as
881 revenue bonds or as general obligations of the service area;
882 (e) sell, lease, mortgage, encumber or otherwise dispose of any properties, including
883 water and water rights, owned by the service area upon such terms and conditions as the board
884 of trustees may determine;
885 (f) own any and all property or interests in property, including water and water rights,
886 that the board of trustees considers necessary or appropriate to carry out the purposes of the
887 service area and acquire property or interests in property by purchase, lease, gift, devise, or
888 bequest;
889 (g) request the county executive to utilize any existing county offices, officers, or
890 employees for purposes of the service area when in the opinion of the board of trustees it is
891 advisable to do so;
892 (h) employ officers, employees, and agents including attorneys, accountants, engineers,
893 and fiscal agents, and fix their compensation;
894 (i) [(A)] (i) require officers and employees charged with the handling of funds to
895 furnish good and sufficient surety bonds; or
896 [(B)] (ii) purchase a blanket surety bond for all officers and employees;
897 (j) fix the times for holding regular meetings;

898 (k) adopt an official seal; and
899 (l) adopt bylaws and regulations for the conduct of its business and affairs.
900 (3) (a) If the county service area issues revenue bonds payable solely from the revenue
901 of commodities, services, and facilities, the fees and charges imposed shall always be sufficient
902 to carry out the provisions of the resolution authorizing the bonds.
903 (b) The board of trustees may take necessary action and adopt regulations to assure the
904 collection and enforcement of all fees and charges imposed.
905 (c) If the county service area furnishes more than one commodity, service, or facility,
906 the board of trustees may bill for the fees and charges for all commodities, services, and
907 facilities in a single bill.
908 (d) The board of trustees may suspend furnishing commodities, services, or facilities to
909 a consumer if the consumer fails to pay all fees and charges when due.
910 (4) Except for services rendered by the county executive, a county may charge the
911 county service area a reasonable amount for services rendered pursuant to a request under
912 Subsection (2)(g).
913 Section 15. Section 23-13-1 is amended to read:
914 23-13-1. Title.
915 This [act shall be] title is known [and may be cited] as the "Wildlife Resources Code of
916 Utah."
917 Section 16. Section 26-18-503 is amended to read:
918 26-18-503. Authorization to renew, transfer, or increase Medicaid certified
919 programs.
920 (1) The division may renew Medicaid certification of a certified program if the
921 program, without lapse in service to Medicaid recipients, has its nursing care facility program
922 certified by the division at the same physical facility.
923 (2) (a) The division may issue a Medicaid certification for a new nursing care facility
924 program if a current owner of the Medicaid certified program transfers its ownership of the
925 Medicaid certification to the new nursing care facility program and the new nursing care

926 facility program meets all of the following conditions:
927 (i) the new nursing care facility program operates at the same physical facility as the
928 previous Medicaid certified program;
929 (ii) the new nursing care facility program gives a written assurance to the director in
930 accordance with Subsection (4); and
931 (iii) the new nursing care facility program receives the Medicaid certification within
932 one year of the date the previously certified program ceased to provide medical assistance to a
933 Medicaid recipient.
934 (b) A nursing care facility program that receives Medicaid certification under the
935 provisions of Subsection (2)(a) does not assume the Medicaid liabilities of the previous nursing
936 care facility program if the new nursing care facility program:
937 (i) is not owned in whole or in part by the previous nursing care facility program; or
938 (ii) is not a successor in interest of the previous nursing care facility program.
939 (3) The division may issue a Medicaid certification to a nursing care facility program
940 that was previously a certified program but now resides in a new or renovated physical facility
941 if the nursing care facility program meets all of the following:
942 (a) the nursing care facility program met all applicable requirements for Medicaid
943 certification at the time of closure;
944 (b) the new or renovated physical facility is in the same county or within a five-mile
945 radius of the original physical facility;
946 (c) the time between which the certified program ceased to operate in the original
947 facility and will begin to operate in the new physical facility is not more than three years;
948 (d) if Subsection (3)(c) applies, the certified program notifies the department within 90
949 days after ceasing operations in its original facility, of its intent to retain its Medicaid
950 certification;
951 (e) the provider gives written assurance to the director in accordance with Subsection
952 (4) that no third party has a legitimate claim to operate a certified program at the previous
953 physical facility; and

954 (f) the bed capacity in the physical facility that will be used for additional Medicaid
955 certification has not been expanded by more than 30% over the previously certified program's
956 bed capacity, unless the director has approved additional beds in accordance with Subsection
957 (5).
958 (4) (a) The entity requesting Medicaid certification under Subsections (2) and (3) must
959 give written assurances satisfactory to the director or his designee that:
960 (i) no third party has a legitimate claim to operate the certified program;
961 (ii) the requesting entity agrees to defend and indemnify the department against any
962 claims by a third party who may assert a right to operate the certified program; and
963 (iii) if a third party is found, by final agency action of the department after exhaustion
964 of all administrative and judicial appeal rights, to be entitled to operate a certified program at
965 the physical facility the certified program shall voluntarily comply with Subsection (4)(b).
966 (b) If a finding is made under the provisions of Subsection (4)(a)(iii):
967 (i) the certified program shall immediately surrender its Medicaid certification and
968 comply with division rules regarding billing for Medicaid and the provision of services to
969 Medicaid patients; and
970 (ii) the department shall transfer the surrendered Medicaid certification to the third
971 party who prevailed under Subsection (4)(a)(iii).
972 (5) (a) As provided in Subsection [ 26-21-502 ] 26-18-502 (2)(b), the director shall issue
973 additional Medicaid certification when requested by a nursing care facility or other interested
974 party if there is insufficient bed capacity with current certified programs in a service area. A
975 determination of insufficient bed capacity shall be based on the nursing care facility or other
976 interested party providing reasonable evidence of an inadequate number of beds in the county
977 or group of counties impacted by the requested Medicaid certification based on:
978 (i) current demographics which demonstrate nursing care facility occupancy levels of at
979 least 90% for all existing and proposed facilities within a prospective three-year period;
980 (ii) current nursing care facility occupancy levels of 90%; or
981 (iii) no other nursing care facility within a 35-mile radius of the nursing care facility

982 requesting the additional certification.
983 (b) In addition to the requirements of Subsection (5)(a), a nursing care facility program
984 must demonstrate by an independent analysis that the nursing care facility can financially
985 support itself at an after tax break-even net income level based on projected occupancy levels.
986 (c) When making a determination to certify additional beds or an additional nursing
987 care facility program under Subsection (5)(a):
988 (i) the director shall consider whether the nursing care facility will offer specialized or
989 unique services that are underserved in a service area;
990 (ii) the director shall consider whether any Medicaid certified beds are subject to a
991 claim by a previous certified program that may reopen under the provisions of Subsections (2)
992 and (3); and
993 (iii) the director may consider how to add additional capacity to the long-term care
994 delivery system to best meet the needs of Medicaid recipients.
995 Section 17. Section 26-34-2 is amended to read:
996 26-34-2. Definition of death -- Determination of death.
997 (1) An individual [who] is dead if the individual has sustained either:
998 (a) irreversible cessation of circulatory and respiratory functions; or
999 (b) irreversible cessation of all functions of the entire brain, including the brain stem[;].
1000 [is dead.]
1001 (2) A determination of death must be made in accordance with accepted medical
1002 standards.
1003 Section 18. Section 26-39-104 is amended to read:
1004 26-39-104. Duties of the department.
1005 (1) With regard to child care programs licensed under this chapter, the department
1006 may:
1007 (a) make and enforce rules to implement this chapter and, as necessary to protect
1008 children's common needs for a safe and healthy environment, to provide for:
1009 (i) adequate facilities and equipment; and

1010 (ii) competent caregivers considering the age of the children and the type of program
1011 offered by the licensee;
1012 (b) make and enforce rules necessary to carry out the purposes of this chapter, in the
1013 following areas:
1014 (i) requirements for applications, the application process, and compliance with other
1015 applicable statutes and rules;
1016 (ii) documentation and policies and procedures that providers shall have in place in
1017 order to be licensed, in accordance with Subsection (1)(a);
1018 (iii) categories, classifications, and duration of initial and ongoing licenses;
1019 (iv) changes of ownership or name, changes in licensure status, and changes in
1020 operational status;
1021 (v) license expiration and renewal, contents, and posting requirements;
1022 (vi) procedures for inspections, complaint resolution, disciplinary actions, and other
1023 procedural measures to encourage and assure compliance with statute and rule; and
1024 (vii) guidelines necessary to assure consistency and appropriateness in the regulation
1025 and discipline of licensees; and
1026 (c) set and collect licensing and other fees in accordance with Section 26-1-6 .
1027 (2) (a) The department may not regulate educational curricula, academic methods, or
1028 the educational philosophy or approach of the provider.
1029 (b) The department shall allow for a broad range of educational training and academic
1030 background in certification or qualification of child day care directors.
1031 (3) In licensing and regulating child care programs, the department shall reasonably
1032 balance the benefits and burdens of each regulation and, by rule, provide for a range of
1033 licensure, depending upon the needs and different levels and types of child care provided.
1034 (4) Notwithstanding the definition of "child" in Subsection 26-39-102 (1), the
1035 department shall count children through age 12 and children with disabilities through age 18
1036 toward the minimum square footage requirement for indoor and outdoor areas, including the
1037 child of:

1038 (a) a licensed residential child care provider; or
1039 (b) an owner or employee of a licensed child care center.
1040 (5) Notwithstanding Subsection (1)(a)(i), the department may not exclude floor space
1041 used for furniture, fixtures, or equipment from the minimum square footage requirement for
1042 indoor and outdoor areas if the furniture, fixture, or equipment is used:
1043 (a) by children;
1044 (b) for the care of children; or
1045 (c) to store classroom materials.
1046 (6) (a) A child care center constructed prior to January 1, 2004, and licensed and
1047 operated as a child care center continuously since January 1, 2004, is exempt from the
1048 [department for] department's group size restrictions, if the child to caregiver ratios are
1049 maintained, and adequate square footage is maintained for specific classrooms.
1050 (b) An exemption granted under Subsection (6)(a) is transferrable to subsequent
1051 licensed operators at the center if a licensed child care center is continuously maintained at the
1052 center.
1053 (7) The department shall develop, by rule, a five-year phased-in compliance schedule
1054 for playground equipment safety standards.
1055 Section 19. Section 31A-16-105 is amended to read:
1056 31A-16-105. Registration of insurers.
1057 (1) (a) Every insurer which is authorized to do business in this state and which is a
1058 member of an insurance holding company system shall register with the commissioner, except
1059 a foreign insurer subject to registration requirements and standards adopted by statute or
1060 regulation in the jurisdiction of its domicile, if the requirements and standards are substantially
1061 similar to those contained in this section, Subsections 31A-16-106 (1)(a) and (2) and either
1062 Subsection 31A-16-106 (1)(b) or a statutory provision similar to the following: "Each registered
1063 insurer shall keep current the information required to be disclosed in its registration statement
1064 by reporting all material changes or additions within 15 days after the end of the month in
1065 which it learns of each change or addition."

1066 (b) Any insurer which is subject to registration under this section shall register within
1067 15 days after it becomes subject to registration, and annually thereafter by May 1 of each year
1068 for the previous calendar year, unless the commissioner for good cause extends the time for
1069 registration and then at the end of the extended time period. The commissioner may require
1070 any insurer authorized to do business in the state, which is a member of a holding company
1071 system, and which is not subject to registration under this section, to furnish a copy of the
1072 registration statement, the summary specified in Subsection (3), or any other information filed
1073 by the insurer with the insurance regulatory authority of domiciliary jurisdiction.
1074 (2) Every insurer subject to registration shall file the registration statement on a form
1075 prescribed by the National Association of Insurance Commissioners, which shall contain the
1076 following current information:
1077 (a) the capital structure, general financial condition, and ownership and management of
1078 the insurer and any person controlling the insurer;
1079 (b) the identity and relationship of every member of the insurance holding company
1080 system;
1081 (c) any of the following agreements in force, and transactions currently outstanding or
1082 which have occurred during the last calendar year between the insurer and its affiliates:
1083 (i) loans, other investments, or purchases, sales or exchanges of securities of the
1084 affiliates by the insurer or of securities of the insurer by its affiliates;
1085 (ii) purchases, sales, or exchanges of assets;
1086 (iii) transactions not in the ordinary course of business;
1087 (iv) guarantees or undertakings for the benefit of an affiliate which result in an actual
1088 contingent exposure of the insurer's assets to liability, other than insurance contracts entered
1089 into in the ordinary course of the insurer's business;
1090 (v) all management agreements, service contracts, and all cost-sharing arrangements;
1091 (vi) reinsurance agreements;
1092 (vii) dividends and other distributions to shareholders; and
1093 [(ix)] (viii) consolidated tax allocation agreements;

1094 (d) any pledge of the insurer's stock, including stock of any subsidiary or controlling
1095 affiliate, for a loan made to any member of the insurance holding company system; and
1096 (e) any other matters concerning transactions between registered insurers and any
1097 affiliates as may be included in any subsequent registration forms adopted or approved by the
1098 commissioner.
1099 (3) All registration statements shall contain a summary outlining all items in the
1100 current registration statement representing changes from the prior registration statement.
1101 (4) No information need be disclosed on the registration statement filed pursuant to
1102 Subsection (2) if the information is not material for the purposes of this section. Unless the
1103 commissioner by rule or order provides otherwise, sales, purchases, exchanges, loans or
1104 extensions of credit, investments, or guarantees involving one-half of 1%, or less, of an
1105 insurer's admitted assets as of the next preceding December 31 may not be considered material
1106 for purposes of this section.
1107 (5) Any person within an insurance holding company system subject to registration
1108 shall provide complete and accurate information to an insurer if the information is reasonably
1109 necessary to enable the insurer to comply with the provisions of this chapter.
1110 (6) The commissioner shall terminate the registration of any insurer which
1111 demonstrates that it no longer is a member of an insurance holding company system.
1112 (7) The commissioner may require or allow two or more affiliated insurers subject to
1113 registration under this section to file a consolidated registration statement.
1114 (8) The commissioner may allow an insurer which is authorized to do business in this
1115 state, and which is part of an insurance holding company system, to register on behalf of any
1116 affiliated insurer which is required to register under Subsection (1) and to file all information
1117 and material required to be filed under this section.
1118 (9) The provisions of this section do not apply to any insurer, information, or
1119 transaction if, and to the extent that, the commissioner by rule or order exempts the insurer
1120 from the provisions of this section.
1121 (10) Any person may file with the commissioner a disclaimer of affiliation with any

1122 authorized insurer, or a disclaimer of affiliation may be filed by any insurer or any member of
1123 an insurance holding company system. The disclaimer shall fully disclose all material
1124 relationships and bases for affiliation between the person and the insurer as well as the basis for
1125 disclaiming the affiliation. After a disclaimer has been filed, the insurer shall be relieved of
1126 any duty to register or report under this section which may arise out of the insurer's relationship
1127 with the person unless and until the commissioner disallows the disclaimer. The commissioner
1128 shall disallow a disclaimer only after furnishing all parties in interest with notice and
1129 opportunity to be heard, and after making specific findings of fact to support the disallowance.
1130 (11) The failure to file a registration statement or any summary of the registration
1131 statement required by this section within the time specified for the filing is a violation of this
1132 section.
1133 Section 20. Section 31A-17-402 is amended to read:
1134 31A-17-402. Valuation of liabilities.
1135 (1) Subject to this section, the commissioner shall make rules:
1136 (a) specifying the liabilities required to be reported by an insurer in a financial
1137 statement submitted under Section 31A-2-202 ; and
1138 (b) the methods of valuing the liabilities described in Subsection (1)(a).
1139 (2) For life insurance, the methods of valuing specified pursuant to Subsection (1)(b)
1140 shall be consistent with Part 5, Standard Valuation Law.
1141 (3) Title insurance reserves are provided for under Section 31A-17-408 .
1142 (4) In determining the financial condition of an insurer, liabilities include:
1143 (a) the estimated amount necessary to pay:
1144 (i) all the insurer's unpaid losses and claims incurred on or before the date of statement,
1145 whether reported or unreported; and
1146 (ii) the expense of adjustment or settlement of a loss or claim described in this
1147 Subsection (4)(a);
1148 (b) for life, accident and health insurance, and annuity contracts:
1149 (i) the reserves on life insurance policies and annuity contracts in force, valued

1150 according to appropriate tables of mortality and the applicable rates of interest;
1151 (ii) the reserves for accident and health benefits, for both active and disabled lives;
1152 (iii) the reserves for accidental death benefits; and
1153 (iv) any additional reserves:
1154 (A) that may be required by the commissioner by rule; or
1155 (B) if no rule is applicable under Subsection (4)(b)(iv)(A), in a manner consistent with
1156 the practice formulated or approved by the National Association of Insurance Commissioners
1157 with respect to those types of insurance;
1158 (c) subject to Subsection (6), for insurance other than life, accident and health, and
1159 title insurance, the amount of reserves equal to the unearned portions of the gross premiums
1160 charged on policies in force, computed:
1161 (i) on a daily or monthly pro rata basis; or
1162 (ii) other basis approved by the commissioner;
1163 (d) for ocean marine and other transportation insurance, reserves:
1164 (i) equal to 50% of the amount of premiums upon risks covering not more than one trip
1165 or passage not terminated; and
1166 (ii) computed:
1167 (A) upon a pro rata basis; or
1168 (B) with the commissioner's consent, in accordance with a method provided under
1169 Subsection (4)(c); and
1170 (e) the insurer's other liabilities due or accrued at the date of statement including:
1171 (i) taxes;
1172 (ii) expenses; and
1173 (iii) other obligations.
1174 (5) (a) Except to the extent provided in Subsection (5)(b), in determining the financial
1175 condition of an insurer of workers' compensation insurance, the insurer's liabilities do not
1176 include any liability based on the liability of the Employer's Reinsurance Fund under Section
1177 34A-2-702 for industrial accidents or occupational diseases occurring on or before June 30,

1178 1994.
1179 (b) Notwithstanding Subsection (5)(a), the liability of an insurer of workers'
1180 compensation insurance includes any premium assessment:
1181 (i) imposed under Section 59-9-101 [or 59-9-101.3 ]; and
1182 (ii) due at the date of statement.
1183 (6) After adopting a method for computing the reserves described in Subsection (4)(c),
1184 an insurer may not change the method without the commissioner's written consent.
1185 Section 21. Section 31A-26-210 is amended to read:
1186 31A-26-210. Reports from organizations licensed as adjusters.
1187 (1) Organizations licensed as adjusters under Section 31A-26-203 shall report to the
1188 commissioner, at the times and in the detail and form as prescribed by rule, every change in the
1189 list of natural person adjusters authorized to act in that position for the organization.
1190 (2) Each organization licensed as an adjuster shall, at the time of paying its license
1191 continuation fee under [Subsection] Section 31A-3-103 , report to the commissioner, in the
1192 form established by the commissioner by rule, all natural person adjusters acting in that
1193 position for the organization.
1194 (3) Organizations licensed under this chapter shall designate and report promptly to the
1195 commissioner the name of at least one natural person who has authority to act on behalf of the
1196 organization in all matters pertaining to compliance with this title and orders of the
1197 commissioner.
1198 (4) Where a license is held by an organization, both the organization itself and any
1199 persons named on the license shall, for purposes of this section, be considered to be the holders
1200 of the license. If a person named on the organization license commits any act or fails to
1201 perform any duty which is a ground for suspending, revoking, or limiting the organization
1202 license, the commissioner may suspend, revoke, or limit the license of that person or the
1203 organization, or both.
1204 Section 22. Section 32A-13-103 is amended to read:
1205 32A-13-103. Searches, seizures, and forfeitures.

1206 (1) The following are subject to forfeiture pursuant to the procedures and substantive
1207 protections established in Title 24, Chapter 1, Utah Uniform Forfeiture Procedures Act:
1208 (a) all alcoholic products possessed, used, offered for sale, sold, given, furnished,
1209 supplied, received, purchased, stored, warehoused, manufactured, adulterated, shipped, carried,
1210 transported, or distributed in violation of this title or commission rules;
1211 (b) all packages or property used or intended for use as a container for an alcoholic
1212 product in violation of this title or commission rules;
1213 (c) all raw materials, products, and equipment used, or intended for use, in
1214 manufacturing, processing, adulterating, delivering, importing, or exporting any alcoholic
1215 product in violation of this title or commission rules;
1216 (d) all implements, furniture, fixtures, or other personal property used or kept for any
1217 violation of this title or commission rules;
1218 (e) all conveyances including aircraft, vehicles, or vessels used or intended for use, to
1219 transport or in any manner facilitate the transportation, sale, receipt, possession, or
1220 concealment of property described in Subsection (1)(a), (b), (c), or (d); and
1221 (f) all books, records, receipts, ledgers, or other documents used or intended for use in
1222 violation of this title or commission rules.
1223 (2) Any of the property subject to forfeiture under this title may be seized by any peace
1224 officer of this state or any other person authorized by law upon process issued by any court
1225 having jurisdiction over the property in accordance with the procedures provided in Title 77,
1226 Chapter 23, Part 2, Search Warrants. However, seizure without process may be made when:
1227 (a) the seizure is incident to an arrest or search under a search warrant or an inspection
1228 under an administrative inspection warrant;
1229 (b) the property subject to seizure has been the subject of a prior judgment in favor of
1230 the state in a criminal injunction or forfeiture proceeding under this title;
1231 (c) the peace officer or other person authorized by law has probable cause to believe
1232 that the property is directly or indirectly dangerous to health or safety; or
1233 (d) the peace officer or other person authorized by law has probable cause to believe

1234 that the property is being or has been used, intended to be used, held, or kept in violation of this
1235 title or commission rules.
1236 (3) If the property is seized pursuant to a search or administrative warrant, the peace
1237 officer or other person authorized by law shall make a proper receipt, return, and inventory and
1238 ensure the safekeeping of the property as required by Sections 77-23-206 through 77-23-208 .
1239 If the magistrate who issued the warrant is a justice court judge, upon the filing of the return
1240 the jurisdiction of the justice court shall cease and the magistrate shall certify the record and all
1241 files without delay to the district court of the county in which the property was located. From
1242 the time of this filing, the district court has jurisdiction of the case.
1243 (4) In the event of seizure of property without process, the peace officer or other person
1244 authorized by law shall make a return of his acts without delay directly to the district court of
1245 the county in which the property was located, and the district court shall have jurisdiction of
1246 the case. The return shall describe all property seized, the place where it was seized, and any
1247 persons in apparent possession of the property. The officer or other person shall also promptly
1248 deliver a written inventory of anything seized to any person in apparent authority at the
1249 premises where the seizure was made, or post it in a conspicuous place at the premises. The
1250 inventory shall state the place where the property is being held.
1251 (5) Property taken or detained under this section is not repleviable but is considered in
1252 custody of the law enforcement agency making the seizure subject only to the orders of the
1253 court or the official having jurisdiction. When property is seized under this title, the
1254 appropriate person or agency may:
1255 (a) place the property under seal;
1256 (b) remove the property to a place designated by it or the warrant under which it was
1257 seized; or
1258 (c) take custody of the property and remove it to an appropriate location for disposition
1259 in accordance with law.
1260 (6) When any property is subject to forfeiture under this section, proceedings shall be
1261 instituted in accordance with the procedures and substantive protections of Title 24, Chapter 1,

1262 Utah Uniform Forfeiture Procedures Act.
1263 (7) When any property is ordered forfeited under Title 24, Chapter 1, Utah Uniform
1264 Forfeiture Procedures Act, by a finding of the court that no person is entitled to recover the
1265 property, the property, if an alcoholic product or a package used as a container for an alcoholic
1266 product, shall be disposed of as follows:
1267 (a) If the alcoholic product is unadulterated, pure, and free from crude, unrectified, or
1268 impure form of ethylic alcohol, or any other deleterious substance or liquid, and is otherwise in
1269 saleable condition, it shall be sold in accordance with Section [ 24-1-16 ] 24-1-17 .
1270 (b) If the alcoholic product is impure, adulterated, or otherwise unfit for sale, it and its
1271 package or container shall be destroyed by the department under competent supervision.
1272 Section 23. Section 34-19-5 is amended to read:
1273 34-19-5. Injunctive relief -- When available -- Necessary findings -- Procedure.
1274 (1) No court, nor any judge or judges of [it] a court, shall have jurisdiction to issue a
1275 temporary or permanent injunction in any case involving or growing out of a labor dispute, as
1276 [herein] defined in Section 34-19-11 , except after hearing the testimony of witnesses in open
1277 court, [(]with opportunity for cross-examination[)], in support of the allegations of a complaint
1278 made under oath and testimony in opposition to it, if offered, and except after findings of all of
1279 the [following] facts described in Subsection (2) by the court, or a judge or judges [of it:].
1280 (2) The findings required by Subsection (1) are all of the following:
1281 [(1)] (a) that unlawful acts have been threatened or committed and will be executed or
1282 continued unless restrained;
1283 [(2)] (b) that substantial and irreparable injury to property or property rights of the
1284 complainant will follow unless the relief requested is granted;
1285 [(3)] (c) that as to each item of relief granted greater injury will be inflicted upon
1286 complainant by the denial of it than will be inflicted upon defendants by the granting of it;
1287 [(4)] (d) that no item of relief granted is relief that a court or judge of it has no
1288 jurisdiction to restrain or enjoin under Section 34-19-2 ;
1289 [(5)] (e) that the complainant has no adequate remedy at law; and

1290 [(6)] (f) that the public officers charged with the duty to protect complainant's property
1291 have failed or are unable to furnish adequate protection.
1292 [Such] (3) Subject to Subsection (4), the hearing required by Subsection (1) shall be
1293 held after due and personal notice of it has been given, in such manner as the court shall direct,
1294 to all known persons against whom relief is sought, and also to those public officers charged
1295 with the duty to protect complainant's property[; provided, however, that if].
1296 (4) (a) If a complainant shall also allege that unless a temporary restraining order shall
1297 be issued before [such] a hearing may be had, a substantial and irreparable injury to
1298 complainant's property will be unavoidable, [such] a temporary restraining order may be
1299 granted upon the expiration of such reasonable notice of application [therefor] for the
1300 restraining order as the court may direct by order to show cause, but in no less than 48 hours.
1301 This order to show cause shall be served upon such party or parties as are sought to be
1302 restrained and as shall be specified in the order, and the restraining order shall issue only upon
1303 testimony, or in the discretion of the court, upon affidavits, sufficient, if sustained to justify the
1304 court in issuing a temporary injunction upon a hearing as [herein] provided for in this section.
1305 (b) Such a temporary restraining order shall be effective for no longer than five days,
1306 and at the expiration of said five days shall become void and not subject to renewal or
1307 extension[; but], except that if the hearing for a temporary injunction shall have been begun
1308 before the expiration of the [said] five days, the restraining order may in the court's discretion
1309 be continued until a decision is reached upon the issuance of the temporary injunction.
1310 (5) No temporary restraining order or temporary injunction shall be issued except on
1311 condition that the complainant shall first file an undertaking with adequate security sufficient to
1312 recompense those enjoined for any loss, expense, or damage caused by the improvident or
1313 erroneous issuance of such order or injunction, including all reasonable costs, [(]together with
1314 [a] reasonable [attorney's fee)] attorney fees, and expense against the order or against the
1315 granting of any injunctive relief sought in the same proceeding and subsequently denied by the
1316 court. This undertaking shall be understood to signify an agreement entered into by the
1317 complainant and the surety upon which a decree may be rendered in the same suit or

1318 proceeding against such complainant and surety, the complainant and the surety submitting
1319 themselves to the jurisdiction of the court for that purpose[; but nothing herein contained],
1320 except that nothing in this Subsection (5) shall deprive any party having a claim or cause of
1321 action under or upon such undertaking from electing to pursue [his] the party's ordinary remedy
1322 by suit at law or in equity.
1323 Section 24. Section 35A-3-313 is amended to read:
1324 35A-3-313. Performance goals.
1325 (1) As used in this section:
1326 (a) "Performance goals" means a target level of performance or an expected level of
1327 performance against which actual performance is compared.
1328 (b) "Performance indicators" means actual performance information regarding a
1329 program or activity.
1330 (c) "Performance monitoring system" means a process to regularly collect and analyze
1331 performance information including performance indicators and performance goals.
1332 (2) (a) The department shall establish a performance monitoring system for cash
1333 assistance provided under this part.
1334 (b) The department shall establish the performance indicators and performance goals
1335 that will be used in the performance monitoring system for cash assistance under this part.
1336 (c) (i) On or before December 31 of each year, the department shall submit to the
1337 legislative fiscal analyst and the director of the Office of Legislative Research and General
1338 Counsel, a written report describing the difference between actual performance and
1339 performance goals for the second, third, and fourth quarters of the prior fiscal year and the first
1340 quarter of the current fiscal year.
1341 (ii) (A) The legislative fiscal analyst or the analyst's designee shall convey the
1342 information contained in the report to the appropriation subcommittee that has oversight
1343 responsibilities for the Department of Workforce Services during the General Session that
1344 follows the submission of the report.
1345 (B) The subcommittee may consider the information in its deliberations regarding the

1346 budget for services and supports under this chapter.
1347 (iii) The director of the Office of Legislative Research and General Counsel or the
1348 director's designee shall convey the information in the report to[: (A)] the legislative interim
1349 committee that has oversight responsibilities for the Department of Workforce Services[; and].
1350 [(B) the Utah Tomorrow Strategic Planning Committee.]
1351 Section 25. Section 36-26-102 is amended to read:
1352 36-26-102. Utah International Trade Commission -- Creation -- Membership --
1353 Chairs -- Per diem and expenses.
1354 (1) There is created the Utah International Trade Commission.
1355 (2) The commission membership consists of 11 members [of which]:
1356 (a) eight members to be appointed as follows:
1357 (i) five members from the House of Representatives, appointed by the speaker of the
1358 House of Representatives, no more than three from the same political party; and
1359 (ii) three members from the Senate, appointed by the president of the Senate, no more
1360 than two members from the same political party;
1361 (b) two nonvoting members to be appointed by the governor; and
1362 (c) the Utah Attorney General or designee, who is a nonvoting member.
1363 (3) (a) The members appointed or reappointed by the governor shall serve two-year
1364 terms.
1365 (b) Notwithstanding the requirement of Subsection (3)(a), the governor shall, at the
1366 time of appointment or reappointment, adjust the length of terms to ensure that the terms of
1367 these members are staggered so that approximately half of the members are appointed or
1368 reappointed under Subsection (3)(c) every two years.
1369 (c) When a vacancy occurs among members appointed by the governor, the
1370 replacement shall be appointed for the unexpired term.
1371 (d) One of the two members appointed by the governor shall be from a Utah industry
1372 involved in international trade.
1373 (4) Four members of the commission constitute a quorum.

1374 (5) (a) The speaker of the House of Representatives shall designate a member of the
1375 House of Representatives appointed under Subsection (2)(a) as a cochair of the commission.
1376 (b) The president of the Senate shall designate a member of the Senate appointed under
1377 Subsection (2)(a) as a cochair of the commission.
1378 (6) (a) State government officer and employee members who do not receive salary, per
1379 diem, or expenses from their agency for their commission service may receive per diem and
1380 expenses at the rates incurred in the performance of their official commission duties at the rates
1381 established by the Division of Finance under Sections 63A-3-106 and 63A-3-107 .
1382 (b) Legislators on the commission receive compensation and expenses as provided by
1383 law and legislative rule.
1384 Section 26. Section 38-1-27 is amended to read:
1385 38-1-27. State Construction Registry -- Form and contents of notice of
1386 commencement, preliminary notice, and notice of completion.
1387 (1) As used in this section and Sections 38-1-30 through 38-1-37 :
1388 (a) "Alternate filing" means a legible and complete filing made in a manner established
1389 by the division under Subsection (2)(e) other than an electronic filing.
1390 (b) "Cancel" means to indicate that a filing is no longer given effect.
1391 (c) "Construction project," "project," or "improvement" means all labor, equipment,
1392 and materials provided:
1393 (i) under an original contract; or
1394 (ii) by, or under contracts with, an owner-builder.
1395 (d) "Database" means the State Construction Registry created in this section.
1396 (e) (i) "Designated agent" means the third party the Division of Occupational and
1397 Professional Licensing contracts with to create and maintain the State Construction Registry.
1398 (ii) The designated agent is not an agency, instrumentality, or a political subdivision of
1399 the state.
1400 (f) "Division" means the Division of Occupational and Professional Licensing.
1401 (g) "Interested person" means a person who may be affected by a construction project.

1402 (h) "Program" means the State Construction Registry Program created in this section.
1403 (2) Subject to receiving adequate funding through a legislative appropriation and
1404 contracting with an approved third party vendor who meets the requirements of Sections
1405 38-1-30 through 38-1-37 , there is created the State Construction Registry Program that shall:
1406 (a) (i) assist in protecting public health, safety, and welfare; and
1407 (ii) promote a fair working environment;
1408 (b) be overseen by the division with the assistance of the designated agent;
1409 (c) provide a central repository for notices of commencement, preliminary notices, and
1410 notices of completion filed in connection with all privately owned construction projects as well
1411 as all state and local government owned construction projects throughout Utah;
1412 (d) be accessible for filing and review by way of the program Internet website of:
1413 (i) notices of commencement;
1414 (ii) preliminary notices; and
1415 (iii) notices of completion;
1416 (e) accommodate:
1417 (i) electronic filing of the notices described in Subsection (2)(d); and
1418 (ii) alternate filing of the notices described in Subsection (2)(d) by U.S. mail, telefax,
1419 or any other alternate method as provided by rule made by the division in accordance with Title
1420 63, Chapter 46a, Utah Administrative Rulemaking Act;
1421 (f) (i) provide electronic notification for up to three e-mail addresses for each interested
1422 person or company who requests notice from the construction notice registry; and
1423 (ii) provide alternate means of notification for a person who makes an alternate filing,
1424 including U.S. mail, telefax, or any other method as prescribed by rule made by the division in
1425 accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act; and
1426 (g) provide hard-copy printing of electronic receipts for an individual filing evidencing
1427 the date and time of the individual filing and the content of the individual filing.
1428 (3) (a) The designated agent shall provide notice of all other filings for a project to any
1429 person who files a notice of commencement, preliminary notice, or notice of completion for

1430 that project, unless the person:
1431 (i) requests that the person not receive notice of other filings; or
1432 (ii) does not provide the designated agent with the person's contact information in a
1433 manner that adequately informs the designated agent.
1434 (b) An interested person may request notice of filings related to a project.
1435 (c) The database shall be indexed by:
1436 (i) owner name;
1437 (ii) original contractor name;
1438 (iii) subdivision, development, or other project name, if any;
1439 (iv) project address;
1440 (v) lot or parcel number;
1441 (vi) unique project number assigned by the designated agent; and
1442 (vii) any other identifier that the division considers reasonably appropriate in
1443 collaboration with the designated agent.
1444 (4) (a) In accordance with the process required by Section 63-38-3.2 , the division shall
1445 establish the fees for:
1446 (i) a notice of commencement;
1447 (ii) a preliminary notice;
1448 (iii) a notice of completion;
1449 (iv) a request for notice;
1450 (v) providing a required notice by an alternate method of delivery;
1451 (vi) a duplicate receipt of a filing; and
1452 (vii) account setup for a person who wishes to be billed periodically for filings with the
1453 database.
1454 (b) The fees allowed under Subsection (4)(a) may not exceed the amount reasonably
1455 necessary to create and maintain the database.
1456 (c) The fees established by the division may vary by method of filing if one form of
1457 filing is more costly to process than another form of filing.

1458 [(d) Notwithstanding Subsection 63-38-3.2 (2)(c), the division need not submit the fee
1459 schedule for fees allowed by Subsections (4)(a)(i) through (vii) to the Legislature until the 2006
1460 General Session.]
1461 [(e)] (d) The division may provide by contract that the designated agent may retain all
1462 fees collected by the designated agent except that the designated agent shall remit to the
1463 division the cost of the division's oversight under Subsection (2)(b).
1464 (5) (a) The database is classified as a public record under Title 63, Chapter 2,
1465 Government Records Access and Management Act, unless otherwise classified by the division.
1466 (b) A request for information submitted to the designated agent is not subject to Title
1467 63, Chapter 2, Government Records Access and Management Act.
1468 (c) Information contained in a public record contained in the database shall be
1469 requested from the designated agent.
1470 (d) The designated agent may charge a commercially reasonable fee allowed by the
1471 designated agent's contract with the division for providing information under Subsection (5)(c).
1472 (e) Notwithstanding Title 63, Chapter 2, Government Records Access and
1473 Management Act, if information is available in a public record contained in the database, a
1474 person may not request the information from the division.
1475 (f) (i) A person may request information that is not a public record contained in the
1476 database from the division in accordance with Title 63, Chapter 2, Government Records
1477 Access and Management Act.
1478 (ii) The division shall inform the designated agent of how to direct inquiries made to
1479 the designated agent for information that is not a public record contained in the database.
1480 (6) The following are not an adjudicative proceeding under Title 63, Chapter 46b,
1481 Administrative Procedures Act:
1482 (a) the filing of a notice permitted by this chapter;
1483 (b) the rejection of a filing permitted by this chapter; or
1484 (c) other action by the designated agent in connection with a filing of any notice
1485 permitted by this chapter.

1486 (7) The division and the designated agent need not determine the timeliness of any
1487 notice before filing the notice in the database.
1488 (8) (a) A person who is delinquent on the payment of a fee established under
1489 Subsection (4) may not file a notice with the database.
1490 (b) A determination that a person is delinquent on the payment of a fee for filing
1491 established under Subsection (4) shall be made in accordance with Title 63, Chapter 46b,
1492 Administrative Procedures Act.
1493 (c) Any order issued in a proceeding described in Subsection (8)(b) may prescribe the
1494 method of that person's payment of fees for filing notices with the database after issuance of the
1495 order.
1496 (9) If a notice is filed by a third party on behalf of another, the notice is considered to
1497 be filed by the person on whose behalf the notice is filed.
1498 (10) A person filing a notice of commencement, preliminary notice, or notice of
1499 completion is responsible for verifying the accuracy of information entered into the database,
1500 whether the person files electronically or by alternate or third party filing.
1501 Section 27. Section 38-2-3.2 is amended to read:
1502 38-2-3.2. Sale of unclaimed personal property.
1503 [(A)] (1) Any garments, clothing, shoes, wearing apparel or household goods,
1504 remaining in the possession of a person, on which cleaning, pressing, glazing, laundry or
1505 washing or repair work has been done or upon which alterations or repairs have been made or
1506 on which materials or supplies have been used or furnished by said person holding possession
1507 thereof, for a period of 90 days or more after the completion of such services or labors, may be
1508 sold by said person holding possession, to pay the unpaid reasonable or agreed charges therefor
1509 and the costs of notifying the owner or owners as hereinafter provided[; provided, however,
1510 that]. However, the person to whom such charges are payable and owing shall first notify the
1511 owner or owners of such property of the time and place of such sale; and provided further, that
1512 property that is to be placed in storage after any of the services or labors mentioned herein shall
1513 not be affected by the provisions of this Subsection (1).

1514 [(B)] (2) All garments, clothing, shoes, wearing apparel on which any of these services
1515 or labors mentioned in [the preceding] Subsection (1) have been performed and then placed in
1516 storage by agreement, and remaining in the possession of a person without the reasonable or
1517 agreed charges having been paid for a period of 12 months may be sold to pay such charges and
1518 costs of notifying the owner or owners as hereinafter provided[, provided, however, that].
1519 However, the person to whom the charges are payable and owing shall first notify the owner or
1520 owners of such property of the time and the place of sale, and provided, further, that persons
1521 operating as warehouses or warehousemen shall not be affected by this Subsection (2).
1522 [(C) 1.] (3) (a) (i) The mailing of a properly stamped and registered letter, with a return
1523 address marked thereon, addressed to the owner or owners of the property[ as aforesaid], at
1524 their address given at the time of delivery of the property to such person to render any of the
1525 services or labors set out in this article, or if no address was so given, at their address if
1526 otherwise known, stating the time and place of sale, shall constitute notice as required in this
1527 [article. Said] section.
1528 (ii) The notice required in Subsection (3)(a)(i) shall be mailed at least 20 days before
1529 the date of sale.
1530 (iii) The cost of mailing [said] the letter required under Subsection (3)(a)(i) shall be
1531 added to the charges.
1532 [2.] (b) (i) If no address was given at the time of delivery of the property [as aforesaid],
1533 or if the address of the owner or owners is not otherwise known, such person who has
1534 performed the services or labors as aforesaid shall cause to be published at least once in a daily
1535 or weekly newspaper in the city, town, [city] and county, wherein such property was delivered
1536 to such person, a notice of the time and place of sale and such notice shall be published at least
1537 [twenty] 20 days before the date of sale.
1538 (ii) Such notice constitutes notice as required in this [article] section if notice cannot be
1539 mailed as [aforesaid] provided in Subsection (3)(b)(i).
1540 (iii)